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Tariffs on Chinese Goods Raise to 25 Percent; U.S. Watches Iran as Tension Escalates Over the Nuclear Agreement; Stock Markets Reacted to U.S. Tariff Threats; North Korea Sending Message to U.S. Through Testing Missiles; James Comey Believes President Trump Obstructed Justice; U.S. Tariffs On Chinese Imports Rise From 10 Percent To 25 Percent; U.S. Carrier Strike Group Reaches Red Sea Amid Iran Dispute; Comey, Russia Could Have Leverage Over Trump; U.S. Seizes North Korea Cargo Ship After Alleged Sanction Violations; China Human Rights; China Denies Torture And Says Camps Are Training Centers; Remembering Kendrick Castillo; Uber IPO Priced At $45 Per Share. Aired 3-4a ET

Aired May 10, 2019 - 03:00   ET

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


[03:00:00] GEORGE HOWELL, CNN ANCHOR: Moves and countermoves. The U.S, increases tariffs on Chinese imports after a no is reached during trade talks. But now responds with a threat of counter measures of its own.

NATALIE ALLEN, CNN ANCHOR: North Korea on display. Kim Jong-un make sure Donald Trump and the world knows he oversaw his country's latest missile launch.

HOWELL: And on the defense. The U.S. president reacts to his son being subpoenaed by the Republican-led Senate intelligence committee.

ALLEN: But will Donald Trump, Jr. appear before that committee? That's the question.

HOWELL: That's the big question.

ALLEN: We'll delve into that this hour. Welcome to our viewers everywhere in the world. We are live in Atlanta.

I'm Natalie Allen.

HOWELL: I'm George Howell. Newsroom starts right now.

Global challenges are growing by the day for the U.S. president. Just three hours ago, the United States made good on its threat to raise tariffs from 10 to 25 percent on billions of dollars of Chinese imports. China has promised to retaliate to take countered measures. If the two sides don't reach an agreement President Trump says he may impose even more tariffs on popular consumer goods.

ALLEN: Then there's North Korea just 24 hours ago it conducted yet a second ballistic missile test the second in a week. And it's an awkward development for Mr. Trump who has long boasted of his personal relationship with the North Korean dictator. Here is what he's saying now. (BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Nobody is happy about it. But we are taking a good look and we'll see. We'll see. The relationship continues but we'll see what happens. I know they want to negotiate. They're talking about negotiating. But I don't think they are ready to negotiate.

(END VIDEO CLIP)

HOWELL: And now Iran is testing the United States saying it will relax its compliance with a landmark nuclear deal of the agreement in 2015. The U.S. naval ships have arrived in the region to counter any possible threat from Tehran.

Here's a quick look now at how the world markets are reacting. You see the results mixed in Asia. The Nikkei, the Hang Seng and the Shanghai. The Hang Seng and the Shanghai both up but the Nikkei down.

ALLEN: Well, let's begin with that looming trade war now in China and dig deeper into situations. CNN's Steven Jiang joining us from Beijing. And hello to you, Steven. First up, keeping our eyes on the markets we know that the U.S. stock market has declined significantly this market and almost all analysts say it is a direct result of a heightened chance of a trade war.

The question on whether these concerns will push these negotiations in Washington to an agreement. What is the view from there?

STEVEN JIANG, CNN PRODUCER: Well, Natalie, it's an interesting question because U.S. President Donald Trump is usually more obsessed with the stock market. He views these numbers as a major gauge of the health of the U.S. economy.

As for the markets here as George was saying, the Chinese stock market the numbers actually have gone up since a new higher tariff kicked in. A bit counterintuitive but we're still watching these numbers very, very closely.

But the Chinese commerce ministry actually issued a statement after this new tariff rate became effective, saying as you were saying, they vow to retaliate with their own counter measures but without offering much detail.

But they also acknowledge the ongoing trade talks in Washington. Saying, the government here still hopes to resolve all these issues through cooperation and consultations, really echoing what the country's top trade negotiators -- negotiator Vice Premier Liu He said upon his arrival in D.C. Take a listen.

(BEGIN VIDEO CLIP)

LIU HE, CHINESE VICE PREMIER (through translator): I'm here under a lot of pressure. I want to show China's utmost sincerity. We want to resolve the differences between us in a frank, confident, and rational manner. I believe there is hope. (END VIDEO CLIP)

JIANG: Hope is really the key word here, isn't it, and even Mr. Trump himself has expressed such a sentiment suggesting he may give President Xi Jinping a call at some point. Now that call hasn't happened but that probably would be the best way for the two sides to bridge their increasingly wide gap on a number of issues.

But it's not surprising, Natalie, that the negotiators couldn't make a breakthrough on the first day of their talks. They really didn't have that much time, only a few hours before this deadline struck. Natalie?

ALLEN: Well, certainly, many people in the U.S. and China and elsewhere around the world are watching what happens and we should find out something in a few hours or later today. Steven Jiang for us there. Thank you.

HOWELL: So now let's go live to London where CNN's Anna Stewart is following Europe's stock market. What's the reaction across Europe, Anna?

[03:04:58] ANNA STEWART, CNN REPORTER: So, the European markets have just open and let me bring you a look at that. Because much like Asia, we're actually seeing some positive sentiment now. So, FTSE 100 up for 55 tenths of a percent. The XETRA DAX over 1 percent, and the CAC 40 almost up 1 percent as well.

So, into the green here, now there are several reasons why. First, we've already seen hefty losses throughout the week in the European markets. They have frankly been pummeled. If you look at the numbers for these indices at the close of yesterday through the week, the FTSE 100 was down nearly 3 percent. The DAX over 3 percent, the CAC 40 over 4 percent. So already big losses.

And also, George, this is what's really interesting. As although the deadline has passed for many investors there's still a window to negotiations because actually these tariffs do not apply to anything that is currently in transit between the two countries. And it takes two to four weeks to ship goods from China to United States.

So, for some investors there still a window of opportunity to reach a deal. So really, perhaps the detail for them is two weeks away. They're holding tight until then.

HOWELL: And to point that out, there is that slight window, we'll see if that makes any difference here. Anna Stewart, thank you.

Most Americans have been insulated from the impact of the U.S. trade tariffs because they've targeted industrial goods and businesses tend to absorb the cost but that could change quickly.

ALLEN: Yes. U.S. consumers may soon see the price of some products go up sharply such as luggage or fabrics but it's the threat of even more tariffs of hundreds of billions of dollars of goods that could really hit consumers in their wallets. Everyday items such as children's toys, televisions, and smartphones could be impacted. HOWELL: On another front, the U.S. president is downplaying the

possibility of a diplomatic breakthrough with North Korea. But the U.S. special representative for North Korea says the door is still open for talks. That's after Pyongyang fired off two suspected short- range missiles Thursday. The second weapons test in less than a week.

Our senior international correspondent Ivan Watson following it live from Hong Kong. And Ivan, with two missile launches playing out in less than a week, clearly North Korea is sending a message they're not pleased. How are they responding to the president's reaction to all of this?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, you know, after North Korea basically brought an end to its moratorium on missile launches and granted Thursday's launches were two described as short-range ballistic missiles. The launches were overseen by Kim Jong-un, himself. State media saying that he was there on the scene actually ordering the launches themselves.

We did not hear President Trump hurling insults calling him little rocket man or anything like that. Instead, President Trump said that he has a relationship with Kim Jong-un that Kim Jong-un wants to negotiate. And talks about wanting to negotiate but in his words he's not ready yet for negotiations.

The U.S. are kind of downplaying these missile launches even though the Japanese defense minister are saying that the launch of short- range ballistic missiles is a violation of United Nations Security Council resolutions.

And the South Korean president says that this is against the spirit of the recent kind of friendship and improvement of relations on both sides of the demilitarized zone. George?

HOWELL: Ivan, also, we saw the United States seizing a North Korean cargo ship shortly thereafter over sanctions violations. We are told at it had nothing to do with the latest missile launches, but again, what is to be made of this move by the United States?

WATSON: The U.S. on its side is signaling that the sanctions are still very much in place. The economic blockade around North Korea which reportedly is causing damage to the already quite weak economy in that country.

And we know that the navy, for example, the U.S. navy has been monitoring allege ship to ship transfers of fuel with U.N. Security Council resolutions blocking sales of fuel. And here we have a case of a ship that had already been seized by the Indonesians in April of 2018. Now formally announced to be in the possession of the U.S. government as part of its sanction enforcement.

So, even if President Trump is still heavily invested in his personal diplomacy with Kim Jong-un, the sanctions are still in place as a kind of stick to try to push the North Koreans to make concessions.

The missile launches this week according to the South Korea president are North Korea telegraphing its displeasure with the failure of the one-on-one summit between Trump and Kim Jong-un in Hanoi last February. And its own strategy for trying to bring the U.S. side to the negotiating table.

[03:10:07] I don't know if this kind of two strategies seizing ships on the other hand by the U.S. or firing missiles which is what North Korea is doing will bring both sides closer to some kind of agreement. George.

HOWELL: We'll have to see. Ivan Watson live for us. Thank you.

ALLEN: We turn now to Iran. The United States saying an American carrier strike group has passed the Suez Canal and reached the Red Sea. It was deployed to the Middle East amid growing tensions with Iran. A defense official says it is now in a position to defend American forces in the area.

CNN's Ben Wedeman is following the growing tensions, he joins us now live from Beirut. And we've heard the U.S. secretary of state say, Ben, that the U.S. doesn't want war but any attacks will be met with the decisive response. How is Iran responding?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Iran is responding of course as we heard Wednesday from President Rouhani, is that it's suspending its compliance with certain elements of the JCPOA, the Joint Comprehensive Plan on Action that 2015 agreement that puts severe limits on Iran's nuclear program.

It's given the European powers signatories to the agreement that's France, Germany and Britain 60 days to take measures to comply with their end of the deal which is basically the lifting of economic sanctions that have crippled the Iranian economy and sent the real, the Iranian currency into a tailspin.

So, it's a difficult situation certainly for the Europeans given that they were opposed to the U.S. pull out a year ago from that agreement by the Trump administration. And they've been trying to keep the agreement alive.

At the same time, if, and they, for instance, work out barter arrangements that would Iran to get around some of the trade sanctions imposed by the United States. But if they were to comply with the request of the Iranians to ease the sanctions, they would be in violation of U.S. laws. So, it's a difficult situation. The solution of which is not all clear, Natalie.

ALLEN: But the United States government have said exactly what prompted them to send this carrier to the Suez Canal. So, we'll of course continue to pay close attention this developing story. Ben Wedeman, thanks, Ben.

HOWELL: At its height ISIS, the ISIS state was the size of Britain before the bloody fall of its last stronghold in Syria.

ALLEN: Our Ben Wedeman whom we just saw --

HOWELL: Yes.

ALLEN: -- was also there for this. He and his team witnessed the exodus of tens of thousands amid a fierce battle to end the ISIS caliphate. They were right there. Take a look.

(BEGIN VIDEOTAPE)

WEDEMAN: We were going to go forward to an area closer to where the ISIS encampment is but because of this fighting, apparently a battle has broken out. A new one. We were actually on our way to go to a part of the ISIS camp on the edge of Baghuz that had been liberated by the Syrian Democratic Forces.

We can hear a lot of gunfire here. The SDF was taking handling of a couple journalists at a time in, and ironically, we were the last ones to go in and just all hell broke loose.

(END VIDEOTAPE)

HOWELL: You'll want to watch Ben's full report, it's a CNN special. The fall, final days of the caliphate starts Saturday at 6.30 a.m. in London, 1.30 p.m. in Hong Kong, only here on CNN.

Still ahead, the Oval Office or a jail cell. That's the question some are asking.

ALLEN: Why a former FBI director says if President Trump was not in one, he might be in the other. Also, the president's son subpoenaed to testify by a Republican-led committee of Congress. We get insight from a long-time Washington watcher on what's going on with this one.

[03:15:00] (COMMERCIAL BREAK)

Former FBI director James Comey says it appears President Trump did obstruct justice and would be prosecuted if we weren't president. There is a Justice Department guideline that states that a sitting president can't be indicted.

HOWELL: Comey did appear at CNN town hall Thursday with our colleague Anderson Cooper. Anderson raised the question could Mr. Trump be prosecuted after he leaves office.

(BEGIN VIDEO CLIP)

JAMES COMEY, FORMER UNITED STATES FBI DIRECTOR: I think the Justice Department have to take a serious look at that whether it's a wise thing to do to a former president, I don't know. That's a harder question, a much bigger question than the facts to the case.

ANDERSON COOPER, CNN HOST: But do you think the evidence is there to prosecute?

COMEY: It sure looks like it's there with respect to at least a couple of those episodes of obstruction.

(END VIDEO CLIP) ALLEN: Comey of course was fired by the U.S. president and he is a frequent critic of Mr. Trump, and said he believes Mr. Trump is morally unfit to be president.

HOWELL: Comey also commented about one of those big unknowns surrounding President Trump.

(BEGIN VIDEO CLIP)

COOPER: Do you think the Russians have leverage over President Trump?

COMEY: I don't know the answer to that.

COOPER: Do you think it's possible?

COMEY: Yes.

(END VIDEO CLIP)

HOWELL: President Trump is questioning why his son Don Jr. was subpoenaed to appear again before the Senate intelligence committee. And we should point out that committee it's led by Republicans.

ALLEN: Well, lately Mr. Trump has had simple answer when Congress wants members of his administration to testify. No. But Donald Trump, Jr. is not part of the administration.

CNN's Kaitlan Collins has more about this development from the White House.

(BEGIN VIDEO CLIP)

TRUMP: My son is a good person. My son testified for hours and hours.

(END VIDEO CLIP)

KAITLAN COLLINS, CNN WHITE HOUSE REPORTER: A mix of surprising frustration from President Trump today after the Senate intelligence committee subpoenaed his son.

(BEGIN VIDEO CLIP)

TRUMP: I'm just very surprised. I really am.

(END VIDEO CLIP)

COLLINS: The president blasting the decision by Republican Senator Richard Burr to bring Donald Trump, Jr. back in for questioning. But he stopped short of saying whether he'll fight it.

(BEGIN VIDEO CLIP)

TRUMP: My son is a very good person, works very hard. The last thing he needs is Washington, D.C.

(END VIDEO CLIP) COLLINS: The spur of the moment news conference was supposed to be a

rare moment of bipartisanship in Washington over healthcare legislation. But, for the first time since the release of the special counsel's report, Trump fumed in front of the cameras for half an hour.

(BEGIN VIDEO CLIP)

TRUMP: The Mueller report came out. That's the bible.

(END VIDEO CLIP)

COLLINS: After declaring on Twitter that the special counsel shouldn't testify in front of Congress the president reversed his position.

(BEGIN VIDEO CLIP)

TRUMP: I'm going to leave that up to the attorney general so whether or not -- I think to me, it looks like a redo.

(END VIDEO CLIP)

COLLINS: As he repeated his claims that the special counsel has an anti-Trump agenda.

(BEGIN VIDEO CLIP)

TRUMP: He was going wild. He was so angry. And this man now is judging me.

(END VIDEO CLIP)

COLLINS: He added a qualifier to his lie that there was no collusion and no obstruction.

(BEGIN VIDEO CLIP)

TRUMP: At the end of the testimony no collusion, and essentially, no obstruction.

(END VIDEO CLIP)

COLLINS: Trump praised his national security adviser while admitting they have major policy differences.

(BEGIN VIDEO CLIP)

[03:20:01] TRUMP: He has strong views on things but that's OK. I actually temper John which is pretty amazing, isn't it?

(END VIDEO CLIP)

COLLINS: As the president was addressing reports that his clash with his national security adviser over teasing a military option in Venezuela. (BEGIN VIDEO CLIP)

TRUMP: I have different sides. I mean, I have John Bolton and I have other people that are a little more dovish than him. And ultimately, I make the decision.

(END VIDEO CLIP)

COLLINS: The president also accusing former Secretary of State John Kerry of violating the Logan Act by meeting with Iranian officials.

(BEGIN VIDEO CLIP)

TRUMP: John Kerry violated the Logan Act.

(END VIDEO CLIP)

COLLINS: The statute bars private citizens from interfering with diplomatic relations between the U.S. and foreign government. Though now one has ever been convicted of violating it. Trump claimed Kerry has told Iranian officials not to talk to the Trump administration.

(BEGIN VIDEO CLIP)

TRUMP: John Kerry tells them not to call. That's a violation of the Logan Act. And frankly, he should be prosecuted on that.

(END VIDEO CLIP)

COLLINS: A spokesperson for Kerry fired back up quickly. Saying "The president was wrong about the facts, wrong about the law, and sadly, he's been wrong about how to use diplomacy to keep America safe.

(END VIDEO CLIP)

Kaitlan Collins, CNN, the White House.

HOWELL: To talk more about this let's bring in CNN senior political analyst Ron Brownstein. Ron, good to have you with us.

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Good to be here.

HOWELL: So, I want to get into this interview first with the former FBI Director James Comey speaking with my colleague Anderson Cooper. He was asked what he thinks should happen to the man who fired him the day President Trump is no longer president. Let's listen.

(BEGIN VIDEO CLIP)

COOPER: Do you think he should be charged when he's out of office?

COMEY: I think --

(CROSSTALK)

COOPER: Based on what Mueller has shown. COMEY: Well, I think the Justice Department will have to take a

serious look at that whether it's a wise thing to do to a former president, I don't know. That's a harder question a much bigger question than the facts to the case.

(END VIDEO CLIP)

HOWELL: And Ron, bearing in mind up to 800 former federal prosecutors have signed on to a statement saying that Mueller's findings would have produced obstruction charges. What are your thoughts about what Comey had to say here?

BROWNSTEIN: Well, you know, we've already been dealing with that possibility in terms of the Southern District of New York essentially naming the president as an unindicted co-conspirator in the campaign finance violation that sent Michael Cohen to prison. That the possibility that he would be indicted after he left office this kind of raises a whole new front in that.

I don't know if that's something that the next president would really consider at the federal level if Trump is beaten in 2020. It certainly would be a very polarizing thing to do.

I think the larger point from the Comey interview was him so firmly joining those what you mentioned 800 prosecutors in saying, look, if this was anyone else, they would have been indicted for the behavior that was outlined in the Mueller report.

And that, of course, you know, puts the ball squarely in the court of Congress about what, if anything, they are willing to do about it while he is still in office.

HOWELL: Yes. We heard the president react to that fact that the Republican-led Senate intelligence committee subpoenaed his son Don Jr. Mr. Trump clearly showed his frustration when he was asked questions about this, saying that he was surprised that it happened, also saying that Don Jr. is a very good person who is exonerated he said by Robert Mueller's report.

What do you think it is about Don Jr., Ron, that the committee wants to hear?

BROWNSTEIN: Well, first, I mean, as you know, in the Mueller report much of the reason that they gave for not charging him over the Trump tower meeting with Russians promising dirt over at Hillary Clinton was their belief that they couldn't -- they could not establish that he knew he was violating the law potentially by accepting something of value.

So, it was far from an exoneration. I think -- I think, you know, clearly, they want to hear more about that. I think they want to hear more about the Trump tower itself that was negotiations for which were continuing long past the point that the president indicated in 2016.

And what's really striking to me, George, about this whole episode is the extent to which other Republicans in Congress have kind of taken up the president side against the Republican chairman of the intelligence committee who has issued a, you know, supported issuing the subpoena.

It is just another escalation of this extraordinary abdication of their historic oversight role. The fact that they are not standing up more as Trump kind of systematically stonewalls these various House inquiries and subpoenas, really is something that in the long run is going to come back to bite, I think Republicans the next time there is a Democratic president.

HOWELL: You know, Ron, one distinction with Don Jr. unlike others who've been on the hot seat. Don Jr. does not work in the White House.

BROWNSTEIN: Yes.

HOWELL: The question, you know, how dangerous is it for this president now to have his son possibly involved?

BROWNSTEIN: Well, you know, I think that he cannot exert executive privilege on this and he cannot order him not to testify. He doesn't want to testify, though. And so, the question of what happens next, especially with all these Republicans in Congress kind of opening a second front against the, you know, kind of friendly fire against the subpoena.

[03:25:03] Even though Mitch McConnell apparently defended it today at a closed Republican lunch. I suspect it's going to be very hard for them to get a lot of information out of Donald Trump, Jr. who was, you know, immediately attacked the committee chair and suggest that he might -- sources close to him have suggested that he might take fifth if he is brought back.

But this just an extraordinary moment. I think as I say as much for revealing the trajectory of Republican thinking in Congress about the role of Congress and oversight as it is about anything, they may actually learn from Donald Trump, Jr.

HOWELL: And also, another person that lawmakers want to hear from is Robert Mueller himself.

BROWNSTEIN: Yes.

HOWELL: And we are seeing the president seeming to reverse course the second time saying that he will now leave it up to the Attorney General William Barr as to whether Mueller testify before Congress.

Why do you think this change of heart came about, and legally, what would that mean? Would it mean that it's more likely or less likely for Mueller to testify?

BROWNSTEIN: You know, I don't think it affects the likelihood for this reason. I don't think Mueller is going to testify while he is a Justice Department employee. I mean, there's really no reason for him to remain in the employer of the Justice Department for very much longer. He's obviously, you know, kind of came out of his retirement to run

this investigation and the investigation is now complete. Obviously, they kind of shut down the office.

Once he leaves the Justice Department, you know, William Barr does not really have the authority to stop him from testifying. The idea that they could claim executive privilege somehow over his investigation seems to, I think most legal scholars a very far legal stretch that the courts would not support.

So, the issue is really, does Mueller want to testify. Does he want to give the public a clear sense from in effect, the horse's mouth about what he found and what he thought about it. In many ways, he's been outmaneuvered, I think since this -- since his investigation was completed.

He was playing by one set of rules, the rules that obtained in Washington during the heyday of his career. Now in the hyper partisan era that we're in, particularly in the Trump presidency I don't think he could have anticipated the kind of things that William Barr did in characterizing his report of what he's herd from the president.

So, I think it is upon him now really a certain obligation to come forward and explain in his own words exactly whether he agrees with the interpretations that have been given about his work.

HOWELL: Ron Brownstein, we always appreciate your time. Thank you.

BROWNSTEIN: Thank you.

ALLEN: Well, it is a tradition for the U.S. president to host championship sports teams after major wins.

HOWELL: On Thursday, Mr. Trump welcomed the 2018 World Series champs the Boston Red Sox. But nearly a dozen players show to skip the ceremony, all of them people of color. It highlights the fraught relationship between the president and the champion athletes of color.

ALLEN: Red Sox team manager Alex Cora who is from Puerto Rico said he wasn't comfortable celebrating at the White House because of the Trump administration's response to the devastation caused by hurricane Maria.

(BEGIN VIDEO CLIP)

ALEX CORA, MANAGER, BOSTON RED SOX: The conversations with loved ones and everybody that really care about Alex. One thing for me, you know, I do think with conviction. That's who I am. And I talked a lot of people, but I think at the end the closest ones for me they understand where I'm coming from.

(END VIDEO CLIP)

HOWELL: Before the ceremony Mr. Trump was asked about Cora's absence, he gave some misleading figures about Puerto Rico's storm relief.

(BEGIN VIDEO CLIP)

TRUMP: The Red Sox are coming in a little while. I like the Red Sox.

UNIDENTIFIED MALE: What do you say to those who argue that you're too divisive. And do you worry it's going to hurt your reelection?

TRUMP: Just so you understand we gave Puerto Rico $91 billion.

(END VIDEO CLIP)

ALLEN: Well, the Washington Post reports that the announced aids to Puerto Rico is actually $41 billion. But it's mostly, it mostly, has not been spent yet.

Well, after two years North Korea is launching missile tests again. Now the U.S. president is trying to figure out how best to deal with the leader he once called little rocket man. That's coming up.

HOWELL: Plus, some families in Kazakhstan say their relatives are being held in China as part of a crackdown on Muslims. Their search for answers as Newsroom continues. Stay with us.

[03:30:00] (COMMERCIAL BREAK)

HOWELL: Welcome back to our viewers around the world, you're watching CNN Newsroom, I'm George Howell.

ALLEN: Appreciate you being with us. I'm Natalie Allen, here are our top stories. U.S. tariffs on Chinese imports have more than doubled in just the past few hours. A midnight deadline for trade deals passed without an agreement tripling arise in tariffs to 25 percent. If the two sides don't strike a deal, the U.S. threatens 25 percent tariffs on an additional $325 billion, this time impacting consumer goods from China. Trade negotiators are to meet again in the coming hours.

HOWELL: American carrier strike group has reach the Red Sea, they are on ongoing tensions with Iran. Those deployed in response to what the U.S. says is a possible threat, but defense officials saying, the USS Abraham Lincoln passed through the Suez Canal and is now in position to defend American forces in that area.

ALLEN: Fired FBI Director James Comey says, it's possible, that Russia is holding something over President Trump's head. Comey appeared at a CNN town hall Thursday night and citing evidence in the Mueller report, Comey says Mr. Trump will likely be indicted if he were not president.

HOWELL: United States Justice Department says it has seized the North Korea's cargo ship that was used to violate sanctions. Officials say, North Korea transported coal to China and other countries and use to profits to funds its nuclear weapons and missile program. The U.S. says the seizure has nothing to do with North Korea's latest missile test this past week.

ALLEN: Let's talk about that with Chad O'Carroll, joining me from Seoul, the CEO of the Korea Risk Group and founder at NK News. Chad, we appreciate your time. Let's talk about why the U.S. as it seized this ship. That it was hauling coal that it sells to flout sanctions. What's the reaction to that move?

CHAD O'CARROLL, CEO OF THE KOREA RISK GROUP: Well this shipping incident has actually happened some time ago. And as far as I'm aware the North Koreans sailors involve, who already being return to North Korea, but the timing of the announcement is interesting. It could have been scheduled anyway to this time, but these things generally go through some (inaudible) works and it maybe a response to yesterday's missile test.

ALLEN: Right. The U.S. said, it wasn't, but the questions are was it or not. You know, we've just seen these missiles launched by Kim Jong-un. Here he is wanting sanctions to be lifted, reportedly wanting to work something out with the United States, but then, you know, he still going around the sanctions. So, why would the United States have an emphatic now to work with him?

O'CARROLL: Well, the Washington's policy is effectively -- it's called maximum pressure. Economic sanctions, isolation and it seems to me North Korea's response to this a policy called missile pressure. And basically intends to keep raising the bar step by step in order to get the U.S. to recalculate on its current policy which is very demanding and very severe for North Korea to respond to. So, it's a risky strategy, but it seems North Korea's effort with this missile test is to get Trump's attention and ultimately to get flexibility on the U.S. position.

[03:35:16] ALLEN: Well, he seemed to come back to this time and time again. And do you think it works? Do you think it will work here to get Mr. Trump's attention?

O'CARROLL: Well, it will certainly get Trump's attention. And the issue is as I said, it's a very risky strategy from the North Korean part. Because there will become -- there will be a threshold in North Korea's testing that once crossed will evoke the necessity of a response from the Trump administration. And once that plays out you start to get in to this risk going to escalation cycle where things just go further and further, the heights intention and we could be back to a situation like 2017. The only thing (inaudible) is Kim Jong-un promise not to test in to continental ballistic missiles. And he said that he won't be doing so until the end of the year at least.

ALLEN: Where does this put South Korea and of course Japan is in play here, and China as well. But South Korea and Japan are the ones that are sitting closes to North Korea when it does this.

O'CARROLL: South Korea is in a really difficult position, because the current government here really wants to engage with North Korea. Hold more summits, even provide food assistant to the DPRK to North Korea, but it's getting a cold shoulder from part the North at the moment and in part of this is because, Seoul is unable to offer much in the form of economic concessions to North Korea due to sanctions. And that the U.S. is not currently willing to allow South Korea to have exemptions to engage in to Korean cooperation projects. So, South Korea is in a very difficult position.

ALLEN: And what about China here, China could be in a merrier -- in a mediatory of sort, how would they be impacted if North Korea continues down this track.

O'CARROLL: Well, China hopes for stability in its neighborhood and would certainly not be interested in seeing a re-run of 2017 when the military tensions really escalated and there were growing fears of a potential flaw on conflict which could, of course, easily spill over into China. So, China will be doing its best ultimately to try and dampen this situation. There is some chatter about the prospects of President Xi Jinping visiting Pyongyang to do a summit. He may do that just before or after his summit, his visit to Seoul earlier in June. So, we will have to see.

ALLEN: All right. We will see what happens, we appreciate your insight and your expertise, Chad O'Carroll for us, thank you, Chad.

HOWELL: A CNN investigation into what could be the biggest human rights violation in the world, led us to Almaty, Kazakhstan. That is where Muslim say they or members of their family were placed in detention camps in neighboring China.

ALLEN: Some say they were tortured. China denies it, but even in this predominantly Muslim country, formal prisoners say they still fear for their lives. Our Matt Rivers has this story from Kazakhstan.

(BEGIN VIDEOTAPE)

MATT RIVERS, CNN CORRESPONDENT: A tiny room in Almaty, Kazakhstan packed wall to wall with desperate people. They all have one thing in common.

So, if you ask how many of these people have relatives that are being held by China and unable to leave for at last six months? How about for a year? That is everybody.

This woman says she has not seen her daughter in a year and a half. This eight-year-old says she wants to tell her parents she misses them. Everyone here has family members they say are being held in detention camps not, in Kazakhstan, but in a country that sits on its eastern border, China.

Kazaks, who are mostly Muslim have traveled back and forth across that border for decades. Some even live in China and are Chinese citizens. So that is why so many Kazaks had been caught up in what critics say is China's ongoing crackdown on Islam.

Over the past few years in the western Chinese region of Xinjiang, the U.S. government says up to 2 million people, nearly all Muslim have been placed in detention camps. CNN got a rare look at some of these camps on a recent trip to Xinjiang. Inside, detainees had said, torture and political indoctrination is routine. Critics say the camps are part of Beijing's attempt to eliminate Islam in China, but to speak to those who have been inside, you have to leave Xinjiang and Almaty, Kazakhstan is the best place to go. [03:40:06] Just 200 miles from the Chinese border Almaty, is home to

many ex-detainees like, Karat Samarhan (ph).

UNIDENTIFIED MALE (through translator): Now, I hate China so much.

RIVERS: Samarhan is a Kazakhstan citizen, but grew up in Xinjiang. On a trip to China in 2017, he says he was detained and put in a camp where he was often forced to stand for 12 hours at a time hands and feet shackled chanting long live Xi Jinping for China's president. He says he even tried to commit suicide after four months he was led out and allowed to return to Almaty. China's foreign affairs ministry told us they are unaware of his case. Samarhan says his own government in Kazakhstan wants him quiet.

UNIDENTIFIED MALE (through translator): The state isn't helping us. It is trying to silence us, because we are so in discord between both countries. I'm living in fear.

RIVERS: The Chinese government denies allegations of political indoctrination and torture. They call the camps quote, vocational training centers designed not to eliminate Islam, but Islamic extremists, but we found a former camp employee who says that is a lie.

UNIDENTIFIED FEMALE (through translator): It's not true at all, because I saw it with my own eyes.

RIVERS: Sayragul Sauytbay, says she saw thought the Chinese language to camp detainees in 2017. Forced to work there by Chinese authorities. She eventually fled and has since accused the Chinese government of torturing camp detainees something China denies. She is now applying for political asylum in Kazakhstan, but as a Chinese citizen she fears she could be deported.

SAYRAGUL SAUYTBAY, EX-CAMP EMPLOYEE: One day someone knocked on the door and that person told my son that China was going to get your mother back soon. You will be orphans.

RIVERS: And yet Kazakhstan's government in charge of a predominantly Muslim country has not publicly condemned Beijing nor called for the camps to close. And some say that's because of money.

So China actually built a lot of this highway that we are driving on right now, it's part of the billions and billions of dollars they invested in Kazakhstan through their built-in road initiative. China is one of Kazakhstan's largest trading partners and critics say Kazakhstan's government can't afford to criticize Beijing. We asked the Kazakhstan government if China had bought its silence on the issue of detention camps. It did not reply.

But no matter the answer, people like these back at the tiny charity in Almaty have no confidence that the Kazakh government will convinced China to release their relatives from the camps. So, they turned to others.

It was kind of heartbreaking, because what these people just said is that they think we, CNN can get their relatives out of the camps. As if it's that simple. And now, even the small charity that helps them has become a target. Just hours after we shot this video, Sedik John (ph), the group's founder was arrested by Kazakhs police and charged with inciting ethnic hatred, he remains in prison.

The tape on the newly locked office door says quote, closed by order of police. Matt Rivers, CNN, Almaty, Kazakhstan.

(END VIDEOTAPE)

ALLEN: We will continued to follow that story.

HOWELL: Absolutely.

ALLEN: It's so important.

Next here we are remembering a hero. Kendrick Castillo died rushing a school shooter in Colorado giving other students enough time to hide in saving their lives. We will hear from one of those survivors next.

[03:45:00] (COMMERCIAL BREAK)

ALLEN: We are getting new details about Tuesday's deadly school shooting in Colorado. Months before that attack at a STEM School, Highlands Ranch, a district official asked for an investigation after a complaint from an anonymous parent, who said she was worried about what she called, the pressure cooker environment on campus. She said she also heard reports of violence, sexual assault, and bullying.

HOWELL: But through a P.R firm, the schools executive director told CNN the school found no evidence to support those allegations saying this in a statement, quote, like any school with more than 1800 students, we receive complaints, all of which we take seriously and investigate properly. The shooting at Stem School Highlands Ranch is now the 15th school shooting in the United States since 2019 started.

ALLEN: That map is hard to comprehend right there, isn't it?

Well, for everyone in the Highlands Ranch community they are struggling with their new reality like so many other schools across the United States.

HOWELL: CNN's Alisyn Camerota spoke to student Chris Elledge and his father. They recall the terrifying moments during that shooting. Listen.

(BEGIN VIDEOTAPE)

ALISYN CAMEROTA, CNN ANCHOR: I want to just start by reading the text messages that you two exchange while the school was on locked down and the gunfire was breaking out because I feel, as though, Mr. Elledge, that any -- this just turns the blood cold of any parent to imagine getting these text messages from their kids while at school. So, Chris writes, dad, the school is on an unexpected lock down. They've got sirens playing all in the school and the radios are going crazy. I'm in the P.E. room with four different entrances. Everyone is freaking out. It's not a drill. I'm actually scared. My heart is racing. I'm actually freaking out. I'm really scared.

You, Mr. Elledge, write back, OK, calm down, remember you're training and breath. And then Chris writes, dad, the announcement are going crazy, the speakers are telling everyone to get out of sight, the teacher thinks somebody is in the school. And Mr. Elledge, you write, I'm on my way to the school now. Mr. Elledge, can you just tell us what happen when you got those text.

ELDON ELLEDGE, SON ESCAPED SCHOOL SHOOTING: You know, when you first hear it, you hope it is not the worst and then later in the message, when you hear the, you see the message for gunshot shoot, you realize it is. So, like any parent you get scared, you want to get to the school. You want to grab your kid.

CAMEROTA: How long did it take you to get to the school?

ELLEDGE: Approximately six minutes.

CAMEROTA: And when you got there, what happened and what was the scene.

ELLEDGE: So, when I first got here, there was not a lot of cops here yet, they had the road blocked off and I could not pull into the school parking lot. So, I turned around and park over beside the school and walked over and there was one other parent here waiting as well. So, basically we just stood and waited to find out what we could, wait for the kids to come out.

CAMEROTA: Oh my gosh. We can only imagine the terrifying moments. So, Chris, what were those moments like in the gym as you were hearing school announcements? What were they telling you?

CHRIS ELLEDGE, STUDENT AT STEM HIGHLANDS RANCH: It was really -- it was just terrifying. It was scary, looking right at my friend's faces, seeing that they were just as terrified as I was and I was crying.

[03:50:00] People were crying in the classroom. Over the intercom, they had announcements going on saying locked down, lock lights out of sight and it just kept repeating over and over and over, and it just kept repeating itself for the whole course of the time that we were in the building and it was extremely scary.

The whole time you are just debating and the first thought that you have was, I need to make sure my parents know what's going on and I need to make sure my parents know I'm OK. I don't want them to worry.

CAMEROTA: We can hear how shaking you still are, of course, because of what you just lived through. How are you going to get through this and go back to school?

C. ELLEDGE: As a community. We are going to get through it as a community, because, you know, you don't stop your life just because of one bad thing. You can't let that get in the way. You have to band together as a community. You have to stay strong, stand strong, STEM strong, STEM is strong and we are a strong community and we will get through this as a school and with my friends and with my parents, with my community as a whole.

CAMEROTA: Mr. Elledge, the parents of Kendrick Castillo lost their only child and the people in his class say that he and other heroic students charged the shooter. And I'm just wondering if you have anything you want to say to his parents.

ELLEDGE: You know, we had a prayer vigil last night and we all as a community recognize his heroics as well as the others and you know, I don't know what you can say at the moment. As far as the parents go, you have done a great job as far as raising your kid. What a great kid, what a great loss to us as a community. So, you know, those are things that are hard to put into words, we as a community will be able to show them how much we appreciate what he did.

CAMEROTA: Eldon and Chris Elledge, I think that you said it beautifully Mr. Elledge, actually. We really appreciate your words. We are so sorry that you went through this. Take care of yourselves. This is going to be a long road.

C. ELLEDGE: Can I say one thing?

CAMEROTA: Yes.

C. ELLEDGE: Kendrick Castillo and Brandon Bailey, you guys are heroes and we owe our lives to you and we owe our lives to the brave men and women and the police officers who got us out of there safely. You guys are amazing.

(END VIDEOTAPE)

ALLEN: What a tender sweet family there and what they are going through. I love how that young man is embracing his father the whole time.

HOWELL: Yes. Just determine to push on, given what a terrifying situation.

ALLEN: Yet another one.

HOWELL: We will be right back after the break.

(COMMERCIAL BREAK)

HOWELL: Just a few hours Uber is set to start trading in the New York stock exchange. The ride hailing firms initial public offering is $45 a share raising 8.1 billion dollars for the company.

ALLEN: As less than what analysts have been predicting, they say Uber was probably cautious after this week's jittery market and the fact that rival Lyft has dropped in value since going public, but since its launch, Uber actually never made money. For more about it, here's CNN Samuel Burke in London.

(BEGIN VIDEOTAPE)

[03:55:09] SAMUEL BURKE, CNN INTERNATIONAL CORRESPONDENT: No profits, no problem. That is the message from Uber's managers ahead of this week's initial public offering. Burning cash the company says necessary to build out its future business.

DARA KHOSROWSHAHI, CEO UBER: What we are looking to build at Uber is essentially your aid to be platform for anyone wanting to get from one place within an urban destination to another place.

BURKE: Uber wants to be the Amazon of driving platforms, offering everything from on demand food delivery and freights services to micro mobility like E-bikes, E-scooter. It's also spending heavily on self- driving cars technology. Envisioning the future were individuals no longer owned cars and turn even more to Uber for rides and its automated taxi fleet.

KHOSROWSHAHI: Just like Amazon, I was able to build this extraordinary infrastructure. First on the back of books and they went into digital categories. You are going to see the same thing coming from Uber.

BURKE: But expensive vision Uber hopes will make investors overlook the company's slowing growth. Uber had an estimated net loss more than a billion dollars in the first quarter of 2019. Losses aren't the only problem the company will face. Uber's future depends on the gig economy. And some of its workers earn below the poverty line. And while the IPO will meant a new batch of millionaire and billionaire executive and investors, the company's most prolific drivers will receive stock were no more than $10,000. Samuel Burke, CNN, London.

(END VIDEOTAPE)

ALLEN: So? Tip you're Uber driver.

HOWELL: Absolutely. Thanks for being with us. I'm George Howell.

ALLEN: I'm Natalie Allen. The news continues next with Isa Soares in London. Thanks for watching.

(COMMERCIAL BREAK)

END