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Dow Drops on Tariff Announcement; New Video of Rescued Thai Boys; Ohio State Abuse and Jim Jordan; Man Harasses Woman Wearing Puerto Rican Flag Shirt; Trump Rips NATO Allies. Aired 9:30-10:00a

Aired July 11, 2018 - 09:30   ET



[09:31:06] POPPY HARLOW, CNN ANCHOR: All right, let's get straight to Wall Street. The market just opened. The Dow down 163. No surprise here this is because of a huge round of new tariffs set to take place on $200 billion worth of goods. Everything from mattresses to refrigerators.

With me, CNN chief business correspondent Christine Romans, CNN Money editor at large Richard Quest.

I am so lucky to have both of you this morning.

So, Romans, let me begin with you. Big picture here?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Big picture here is what looked at -- originally like it was going to be contained to $34 billion or $50 billion with just threats is now coming to fruition. The threats are coming to fruition. American farmers will be targeted with retaliation. The Chinese, you're talking about, retaliation here. Qualitative retaliation. That could mean letting shipments of American products sit at ports before they're allowed in. It could mean companies have a hard time doing deals in China. It could be China selling U.S. treasuries. There are a lot of ways the Chinese could retaliate further, and none of them are good for Americans.

HARLOW: Richard Quest, is -- of course there can be reciprocal and have been reciprocal tariffs, taxes, from China, but they can also do a lot of harm to the U.S. in response to this. They can affect trade and services between the two countries, tourism, et cetera, education. They can also make life really hard for American businesses in China.

RICHARD QUEST, CNN MONEY EDITOR AT LARGE: Which is what Christine was alluding to. Yes, non-tariff barriers. Joint venture requirements. Capital requirements. Regulatory requirements. You can make it very difficult to do business.

The key problem with this whole tariff issue is, as Christine was saying, the $34 billion was contained, but from the get go the president said, you retaliate and I'll go to $200 billion. Well, they did.


QUEST: He's now gone to $200 billion. Now that would be manageable on its own. But on the other side of the equation, he's having exactly the same battle with the Europeans with automobiles because they didn't stick with their steel and aluminum. So he's got an escalating tariff war --

HARLOW: On two fronts.

QUEST: More than two fronts, basically.

ROMANS: Right. Right.

QUEST: And as the EU President Donald Tusk tweeted this morning --

HARLOW: Right.

QUEST: Dear America, remember who your allies are, you haven't got that many.

HARLOW: That's a great point.

Romans, you even have Republicans in the Senate, like Orrin Hatch, who's a big ally of the president --


HARLOW: Calling this reckless.


HARLOW: The president cannot be moved on this.

ROMANS: No. And this -- we're told by people who are close to him and the trade hawks in his administration that he thinks he is right here. That China started this trade war years ago. And, look, China is playing a game and trying to make itself look like the good guy, but China is the bad guy here and he is the first person with the courage to be able to try to fix it.

They also think -- they also think the U.S. economy is so strong it will be able to weather this. Those tariff s we're talking about today, these new $200 billion, those are 10 percent tariffs. They're not 25 percent, like the first round. So they think that consumers will be able to pay 10 percent more for a dog leash or dog food, you know, and that it's not going to -- it's not going to hurt them.

QUEST: And the ultimate irony in all of this is that that allies agree. Everyone agrees that China's the bad guy.


QUEST: That China has behaved badly. But you don't go and attack China --

HARLOW: Right. QUEST: And hope your allies will help you if you are attacking them at the same time.

HARLOW: Also, politically, Richard, why does this make sense for the president, the economy is so strong now, why risk it, like Gary Cohn has said, ahead of the midterms and ahead of 2020?

QUEST: OH, this isn't politics for the president. A part -- it's played to the base partly. He believes it.

ROMANS: It's checking off a campaign policy.

QUEST: Yes. He believes it. He genuinely believes that --

HARLOW: But does he believe it enough to risk losing seat, to risk losing an election?

QUEST: He doesn't think he will.

ROMANS: And I wonder how much soybean farmers, for example, how much leeway are they going to give the president because soybean prices today are at a ten year low. The president is tweeting this morning about how it's not his fault that it started 15 years ago, right?

HARLOW: Right.

ROMANS: But this is Iowa. This is Wisconsin. This is -- these are -- these are states that are really important to him.

[09:35:04] HARLOW: Minnesota.

ROMANS: Soybean farmers --


ROMANS: How much leverage are they going to give him because they are -- they're the ones who are going to be sacrificed for steel workers.

HARLOW: And as he's in Europe, he's speaking to them directly on Twitter this morning.

ROMANS: Right.

HARLOW: Thank you both.

ROMANS: You're welcome.

HARLOW: Nice to have you. Appreciate it.

Coming up, a first look at a remarkable new image of the rescue operation that saved those 12 young lives and their soccer coach. Wait until you see this.


HARLOW: All right, new this morning, look at this. This is the first image we are seeing of these 12 boys on that Thai soccer team and their coach released, miraculously rescued from that cave. They are all sitting up, alert in these hospital beds.

Let's go to our Matt Rivers outside of the hospital.

And, Matt, we've been talking to you every morning, of course, and I'm so glad that this morning we're talking about this picture.

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Yes, it's fantastic. It's the first time that we've seen videos of these kids and also their parents inside that hospital.

[09:40:02] Let's talk about the kids first, though. They're wearing masks that prevent them from getting further infections. But what Thai officials are saying today is that they are doing OK. They're quite healthy. One of them still has a lung infection but is quickly getting over it.

And in this video, we can see for ourselves for the first time, there kids look pretty good. I mean I'm not a doctor, but if you look at the kids, you know, yes, they're in the hospital, but they're sitting up. One of them throws up a peace sign to the camera. Other ones are doing this, which means I love you in sign language. But in Thailand it's often used like this to say, I'm OK or I'm good, I'm good. And so it's remarkable to see these kids in the hospital beds sitting up. We've seen other videos where they're walking across, talking to one another. It's just another sign that backs up what officials are saying today, that these kids are doing pretty well, Poppy, against the odds.

HARLOW: Wow. And you just think about how resilient kids are physically and mentally. And look what they've been through and they're doing so well.

Also, tell me about this new video that we're just getting showing part of the rescue.

RIVERS: Yes, it's remarkable video from inside the cave, again, provided to us by the Thai government. And what you see here is part of the rescue operations where you're actually -- they're dragging these kids out on stretchers. And it shows you how difficult this was because they had to do that for hours.

And some of this video, that's actually showing some of the easier parts of this rescue where they're walking over incredibly sharp rocks. There's water at their feet. It's so perilous. The passage ways are narrow. And that's the easier part of this.

What we don't see is them underwater, actually having to do the diving part of the operation. And we've been saying, Poppy, over and over again over the past couple of days how dangerous this mission was. But what this video just shows you for the first time we can see it with our own eyes. It's one thing to say it. It's one thing to hear about it from officials. But to see the bravery and the courage and the expertise of these rescuers going in and making this happen, it just reinforces what we've been hearing from officials. HARLOW: No question the world -- the world applauding all of those

rescuers, the divers, the doctor that went in there, the diver that lost his life trying to rescue those kids. Pretty -- pretty extraordinary. Matt Rivers, thank you so much.

Ahead, Republicans this morning are rallying behind their fellow Republican Congressman Jim Jordan as questions mount about what he knew or didn't know about the sexual abuse that is alleged at Ohio State. We'll have the latest.


[09:46:45] HARLOW: This morning, the conservative House Freedom Caucus is rallying behind embattled Ohio Congressman Jim Jordan. Jordan faces accusations that he ignored alleged sexual abuse of wrestlers by their team doctor when he was a coach at Ohio State decades ago.

Here is the chairman of the House Freedom Caucus, Mark Meadows.


REP. MARK MEADOWS (R), CHAIRMAN, HOUSE FREEDOM CAUCUS: We took a vote. It was unanimous in support of Jim Jordan. One hundred percent. If anything, I had to cut off the number of people that were offering words of encouragement and support, not the other way around.


HARLOW: Jean Casarez has been on this story and she joins me now.

And we just, moments ago, heard from Jim Jordan again this morning.

JEAN CASAREZ, CNN CORRESPONDENT: That's right. And his office, he -- they says that they're making arrangements so that he will participate and assist in any way he can with the independent investigation going on at Ohio State.

But Congressman Jim Jordan just spoke out minutes ago once again on what is becoming very, very front and center about whether or not he knew that athletes that he was an assistant coach of at Ohio State in the wrestling department knew that they allegedly being sexually molested.



REP. JIM JORDAN (R), OHIO: I'm -- I'm telling the truth. Look, I stood up to the speaker of the House from my home state, stood up to the IRS and have stood up to the FBI. To think that I would not stand up for my athletes is ridiculous.


CASAREZ: Now, Jim Jordan, back in the late 1980s early '90s, was an assistant coach. One of three, I understand. Russ Hellickson was the head coach. And CNN had previously reported that Russ Hellickson had said in a video that CNN has obtained, we have not released it, that he told the doctor at one point, Dr. Richard Strauss, that you are too hands on. The doctor responded, I'm being thorough. Russ Hellickson, head coach, went further, when you shower with the athletes, they feel uncomfortable.

Well, Hellickson is now telling "USA Today" this morning almost the same thing, that the athletes felt uncomfortable with him showering with the team. That he told Dr. Strauss that. Strauss said, well you, Hellickson, head coach, you also show with the team. Hellickson said, not for an hour, doc. And he said, you're also too hands on with weigh ins.

So with this information, Poppy, I think we can see that the head coach, Russ Hellickson, knew something what was going on.

HARLOW: Something was up. Right.

CASAREZ: And -- and tried to do something about it. The rest -- wrestlers are coming out saying Jim Jordan knew. We know he knew --


CASAREZ: Because we told him and talked about it. Fourteen wrestlers came out yesterday saying he did not know. He's the highest quality person that we know in our lives. That 100 percent this false.

HARLOW: So you really have former wrestlers saying he knew and former wrestlers saying he didn't know.

CASAREZ: That's right.

HARLOW: And the doctor is not alive.

CASAREZ: Dr. Strauss died in 2005.

HARLOW: Right. Right.

Jean, thank you for being on this story. I know you'll update us when you have more.


HARLOW: Ahead for us, an Illinois police officer this morning being accused of just standing by while a woman is harassed by this mean just for wearing a shirt with a Puerto Rican flag on it. Now, a Democratic lawmaker is demanding the Justice Department investigate.


[09:52:48] HARLOW: Welcome back.

This morning there is outrage after a man in Illinois is caught on video harassing and yelling at a woman in the park just for wearing a shirt with a Puerto Rican flag on it. As she's being harassed, the woman says a police officer just stood there as she asks him for help. Watch this.


UNIDENTIFIED FEMALE: Officer, can you, please -- I am renting this area and he's harassing me about the shirt that I'm wearing.

UNIDENTIFIED MALE: (INAUDIBLE) this is America. You're not renting anything.


UNIDENTIFIED MALE: No, you put a permit --

UNIDENTIFIED FEMALE: I have a permit for this.

UNIDENTIFIED MALE: A permit to have it here.

UNIDENTIFIED FEMALE: Right. So can you please step away from me, sir?

UNIDENTIFIED MALE: But you cannot --

UNIDENTIFIED FEMALE: Can you please step away from me?

UNIDENTIFIED MALE: You're not going to change us, you know that?

UNIDENTIFIED FEMALE: I'm not trying to change anyone. I'm just trying to come here for a birthday party.

UNIDENTIFIED MALE: No, the world is you're not going to change the United States of America.




UNIDENTIFIED MALE: You should not be wearing that in the United States of America.


UNIDENTIFIED MALE: Are you a citizen?

UNIDENTIFIED FEMALE: Yes, I am a citizen.

UNIDENTIFIED MALE: Are you a United States Citizen?

UNIDENTIFIED FEMALE: Can you please get away from me?

UNIDENTIFIED MALE: Then you should not be wearing that.

UNIDENTIFIED FEMALE: Can you please get away from me?

UNIDENTIFIED MALE: You should be wearing a United States of America flag.

UNIDENTIFIED FEMALE: Officer -- officer, I feel highly uncomfortable. Can you please grab him? Please? Officer?

UNIDENTIFIED MALE: Not Puerto Rico. Are you a citizen? Are you an American citizen? I'm an American citizen.


HARLOW: Wow. That really happened.

After other officers arrived, this man was arrested and charged with assault and disorderly conduct. The original police officer who was standing there is now on desk duty as they investigate. And Democratic Congressman Luis Gutierrez is calling for the Department of Justice to investigate.

With me now is our political commentator Ana Navarro.

Wow, what do you think when you watch that?

ANA NAVARRO, CNN POLITICAL COMMENTATOR: So many things go through my mind as, you know, as I saw the video and I hear the audio.

First of all, it's just, you know, the last of what's been a slew of racist, bigoted actions that have been caught on video in the last several weeks. We've seen incidents happen to African-Americans in pools. During the Fourth of July, a 92-year-old Mexican man was beat to a pulp with a brick on the face for visiting his family while he was going around his, you know, daily walk.

And then when we see this -- first of all, you know, the guy doing the attack is a moron because the United States -- well, you know, is she an American citizen? Yes. She was born an American citizen. She's Puerto Rican. Puerto Ricans are American citizens.

[09:55:12] Second of all, the officer who's just standing there, like an iguana in the sun, is shameful, too! It is unbelievable that that guy could threaten that woman in such a way, get that close to her, assault her, attack her verbally, abuse her, and that guy is just standing there, completely immobile!

And, you know, a few things. Number one, to the Puerto Ricans, to my Puerto Rican brothers and sisters, I would say, you know what, you want to show to people that you are U.S. citizens, vote this November. There are places where Puerto Ricans can make or break elections. Places like Florida, where I am now. So you want people to know that Puerto Ricans are U.S. citizens, let the story that comes out of November be that the elections in Florida, for who went to the Senate or who became governor, were decided by the Puerto Ricans that moved here after Maria.

Another thing is, but for iPhones, but for all of these things getting caught on video, there would be no accountability to these attacks and this racism. Racists must pay consequences. There has to be accountability. People need to continue recording this, putting it on social media, using the platforms and letting people know what's going on in America, because we need to fight back against this!

HARLOW: And, Ana, Puerto Rico's governor, Governor Rossello, said last night on Erin Burnett. Here, let me read you part of it. He said, this is not an immigration issue. It's an issue of education. It's an issue of civil rights. And it's an issue of basic human dignity.

So part of it he points to education. But when you look at, for example, how Puerto Rico has been treated, and the lack of efficient aid after Maria, and you look at this in totality in the environment we're living in, what are your thoughts?

CABRERA: I think it's horrible. I think we have -- I think this administration has treated Puerto Ricans like second class U.S. citizens. It's unbelievable that thousands of Puerto Rican deaths went unreported for months and months and months and are still not part of the official report of deaths after the hurricane. It is unbelievable that six, eight months after that hurricane, so much of Puerto Rico still didn't have running water or electricity. Those things would not have been allowed to occur in mainland U.S.

And so I think what you are seeing is that kind of, you know, permeated, trickled down. You are seeing trickle-down racism. Racists feel empowered. They feel legitimized. They feel like they will pay no consequences.

And the only way to stop this is by making sure that it costs them jobs. That it shams them socially. That they cannot go about their regular lives. That they are embarrassed out of their actions. Because being a racist is not OK. It is not OK and it is not acceptable in the United States and we will not allow it.

HARLOW: And now we are seeing it because people are documenting what is happening to them, as this woman did.

Ana, thank you for being here.

CABRERA: We tell you, don't leave home without your iPhone, folks.

HARLOW: Yes. there you go.

CAMEROTA: And if you've got a little pigment in your skin, bring two.

HARLOW: Ana Navarro, thank you for being here.

All right, we have a lot to get to. The next hour begins right now.

Top of the hour. Good morning, everyone. I'm Poppy Harlow in New York.

Blistering criticism and condemnation. President Trump taking on some of America's closest allies once again this morning as he kicks off the NATO summit in Belgium. Just moments ago, the president finished a one-on-one meeting with German Chancellor Angela Merkel after accusing Germany of being, quote, captive of Russia because of an energy deal between the two countries. We are expecting video from this one-on-one meeting that President Trump had with Chancellor Merkel in just moments. And you will see that right here. Also this morning, the president demanding that our other allies

increase their defense spending, a point that he is likely to bring up when he meets, in moments, with French President Emmanuel Macron.

Let's go to Kaitlan Collins. She joins us live from NATO headquarters in Brussels.

And we're getting a little bit of a read-out, right, about how this one-on-one went with the president and Angela Merkel?

KAITLAN COLLINS, CNN WHITE HOUSE CORRESPONDENT: Yes, we're hearing a little bit. We don't have the video yet, but the president did seem to say that he has a good relationship with Merkel. That is quite interesting after the comments the president made this morning when he came out swinging at this NATO summit, going after them for their defense spending, but also singling out Germany and Merkel specifically during that breakfast with the general -- secretary- general of NATO.

You saw the president there. He was going after Germany, saying that they're not spending enough on defense. They are a favorite target of his when it comes to that argument. But also he went one step further to say that he believes they are being totally controlled by Russia.

[10:00:08] (BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, Germany is totally controlled by Russia because they are getting from 60 percent to 70 percent of their energy from Russia