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Actress Felicity Huffman To Enter Guilty Plea In Court; Trump Meets With Controversial Far-Right P.M. Of Hungary, Answers Reporters' Questions; President Trump Responds To New Higher Tariffs China Imposed On The U.S. Aired 2:30-3p ET
Aired May 13, 2019 - 14:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[14:31:55] BROOKE BALDWIN, CNN ANCHOR: Any moment now inside a Boston federal courtroom, Actress Felicity Huffman will formally enter a guilty plea for her part in the massive college admissions scam. We'll show video of her arriving to her arriving to the courthouse two hours early. She has been charged with one count of conspiracy to commit fraud. Prosecutors say she paid thousands and thousands of dollars to a fake charity to cheat on her daughter's SAT tests.
Brynn Gingras is our CNN national correspondent, out in Boston.
Brynn, the hearing is just getting underway. What are you expecting to see?
BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: Yes. Mark Morales, my colleague, is inside the courtroom for the proceedings and says Felicity Huffman is in the courtroom sitting with her attorneys, waiting for the judge to start the proceedings. In the past, when we have seen some parents make guilty pleas, because some others have, it's been procedural in the sense the attorneys basically lay out the charges.
Again, the judge makes sure the defendant understands the charges, and then makes sure they really do want to enter that guilty plea. That's what we are expecting from Felicity Huffman today. Of course, anything could happen in court. We're also wondering, will she say anything.
If you remember, last month, Brooke, she gave a huge apology. Extremely long. Extremely detailed about her part in the scam. I'll read part of it. She said, quote, "I am ashamed the pain I have caused my daughter, my family, my friends, my colleagues and the educational community.
I want to apologize to them. And especially I want to apologize to the students who work hard every day to get into college, and to their parents who make tremendous sacrifices to support their children and do so honestly."
She talked about being ashamed and that her daughter knew nothing of the involvement in the scam where she paid money to get her daughter's test scores improved to get into college. We'll see. We'll see if she says anything, Brooke. We're standing by for that.
BALDWIN: A stark comparison to Lori Loughlin and that side and what they have yet to say. Brynn, we'll listen in for that. We'll stay in close touch with you.
Thank you very much for now.
Meantime, a month, one month before the first debate, hear how Beto O'Rourke is pushing the reset button on his presidential campaign.
[14:34:03] Plus, have you heard about this today? As passengers waited aboard his plane, police yank a pilot from the flight because he's charged in a triple murder case. That story ahead.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: -- Hungary. And Viktor Orban has done a tremendous job in so many ways. Highly respected. Respected all over Europe. Probably, like me, a little bit controversial. But that's OK. That's OK.
You've done a good job and you've kept your country safe.
We'll be discussing NATO. As you know Hungary is a proud member of NATO. And we've gotten to know each other a little bit. We'll be discussing trade, and lots of other subjects. We'll be meeting with representatives of Hungary later with the prime minister, and we'll spend some good time together.
So, Mr. Prime minister, thank you very much for being at the White House. Thank you very much.
(CROSSTALK)
TRUMP: It's a great honor. Thanks.
VIKTOR ORBAN, HUNGARIAN PRIME MINISTER: May I have a word?
TRUMP: Yes, please.
ORBAN: So, President, thank you very much for the invitation.
TRUMP: Thank you.
ORBAN: May I just say that we are proud that so many Hungarians contributed to the tremendous progress of United States. I am very happy to be here again. May I say to be young again. And 20 years ago first time here.
I have some expectations for this meeting this afternoon. First of all, to strengthen our strategical alliance. Then to discuss global political issues because so many changes are going on, and we have some similar approaches. And I would like to express that we are proud to stand together with the United States on fighting against illegal migration, on terrorism, and to protect and help the Christian communities around the world. So, President, thank you for the invitation.
TRUMP: And you have been great with respect to Christian communities. You have really put a block up, and we appreciate that very much.
So we're going to have some meetings now. A lot of subjects under discussion. And the relationship is very good with Hungary.
Thank you all very much.
(CROSSTALK)
UNIDENTIFIED REPORTER: The decision to retaliate on tariffs and the market reaction to that?
TRUMP: Well, the reaction is simple. China has been taking advantage of the United States for many years. I'm not just talking about during the Obama administration. You can go back long before that. And it's been taking out $400 billion, $500 billion, $600 billion a year out of the United States.
We can't let that happen. We're in a strong position. Our economy has been powerful. Theirs has not been. We've gone up a lot since our great election in 2016. And if you look at the numbers, they've gone down quite a bit. We're dealing with them.
We have a very good relationship. Maybe something will happen. We'll be meeting at the G-20 in Japan. And that will be I think probably very fruitful meeting.
[14:40:03] But we're taking in hundreds of millions of dollars. We're taking in millions of dollars of tariffs, and those tariffs are going to be tremendously -- if you look at what we've done thus far with China, we've never taken in 10 cents until I got elected, now we're taking in billions of billions. It went up Friday substantially.
It's 25 percent on $200 billion. Now it's 25 percent on $250 billion. In addition to that, we have another $325 billion we can do if we decide to do it. So we are taking in tens of billions of dollars. We've never done that before with China. We've never done that before with anybody, frankly. Because we've been taken advantage of on all of our trade deals practically.
This is a very positive step. I love the position we're in. There can be some retaliation, but it can't be a very substantial by comparison. And out of the billions of dollars that we're taking in, a small portion of that will be going to our farmers, because China will be retaliating probably to a certain extent against our farmers.
We're going to take the highest year, the biggest purchase that China has made with our farmers, which is about $15 billion, and do something reciprocal for our farmers who our farmers can do well. They'll be planting. They can sell for less and make the same kind of money until it's straightened out. Our farmers will be happy. Our manufacturers will be happy. And our
government is happy because we're taking in tens of billions of dollars. I think it's working out well. Again, we do much less business with China than they do with us. If you take a look at $100 billion versus $600 billion.
And just so you understand, we don't have to pay any tariffs. If you're a manufacturer in this country, you pay nothing. Open your division or open up your product. Have it made in this country as opposed to made in China. Or if you don't want to do that -- and that would be ideal, that's what it used to be a long time ago when we were smart, when we had an economy that was really something very special.
Now we're having a period of tremendous growth and tremendous success like we haven't seen for a long time. But in the old days we made our product. And we took our product and that's what it was. Now we go to China. We buy it. Not anymore. And if they don't want to pay tariffs, make it here or buy it from another country that's a non- tariffed country. Whether you go to Vietnam or so many others, you can do that.
The bottom line is we are taking in tremendous amounts of money. It already started as of last Friday, but it really started seven months before that. It's not a form of tariffs or taxes. And it had a tremendous impact. If you looked at the first quarter, which is always historically the worst quarter, we were at 3.2 percent. People were surprised. A lot of that was the tariffs we're taking in from China. We're in a good position. I think it's only going to get better.
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UNIDENTIFIED REPORTER: Can you guarantee a trade deal with China by June 1st?
TRUMP; We're in a great position right now. No matter what we do. I think China wants to have it because companies are already announcing that they're leaving China because they can't do that. They can't compete if they're in China with the tax.
What a lot of companies are going to be doing quite naturally is leaving China and going to other countries so they don't have to pay the tariff. That's something that's a problem for China. They don't want to have that. And we don't want to have that necessarily happen to China. But we had a deal with China.
It was 95 percent there. And then my representatives, as you know, Secretary Mnuchin and Bob Lighthizer, they went to China and were told the things fully agreed to we're not going to get anymore, they're going to un-agree to them. That's not unacceptable. I said, that's fine, put on the tariffs. Again, so we have tens of millions of dollars pouring into our coffers, the coffers of the U.S. Treasury.
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UNIDENTIFIED REPORTER: Are you seek regular -- (INAUDIBLE) TRUMP: We'll see what happens with Iran. If they do anything, it
would be a bad mistake, if they do anything. I'm hearing little stories about Iran. If they do anything, they will suffer greatly. We'll see what happens with Iran.
UNIDENTIFIED REPORTER: Did you speak -- (INAUDIBLE)
TRUMP: I'll meet with him directly. Yes, I'll be meeting with President Xi of China, yes.
UNIDENTIFIED REPORTER: What about President Putin, will you be meeting with him?
TRUMP; Yes, I will be meeting with President Putin also.
UNIDENTIFIED REPORTER: On Russia, Secretary Pompeo was there, heading there. What message do you have for him to send to Putin?
[14:44:58] TRUMP: I think the message is that there has never been anybody that's been so tough on Russia, but at the same time, we're going to end up getting along with Russia. It makes sense to get along with Russia. Nobody sanctioned Russia like I have.
Nobody has talked about the pipeline going to Germany and various other places like I have. I said it's very unfair having to do with the United States and NATO. There's been nobody that's ever done -- and if you really look at something big, our energy business, we're now the biggest in the world.
We're bigger than Russia. We're bigger than Saudi Arabia. We're bigger than anybody. That all happened since I've become president because I made it, so you can do that. And we're taking in a lot of money. Our country is doing really well. We've probably never done this well before. And it's going to continue.
We have tremendous science. As far as the deal with China is concerned, believe it or not, it's very important, but it's a very, very small part of the kind of numbers that we're doing right now since my election.
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UNIDENTIFIED REPORTER: The $325 billion in additional tariffs -- (INAUDIBLE)
TRUMP: I haven't made that decision yet. We have the right to do another $325 billion at 25 percent in additional tariffs. That is a tremendous amount of money that would come into our country. I have not made that decision yet.
UNIDENTIFIED REPORTER: Should McGahn will held in contempt of Congress?
TRUMP: I don't know what's going on. I can tell you there's never been anybody so transparent as the Trump administration. And it was no collusion, and no obstruction. And we're wasting a lot of time with that stuff. But the Mueller report came out. It was a good report for us.
UNIDENTIFIED REPORTER: Mr. President, are you concerned about democratic backsliding in Hungary under this prime minister?
TRUMP: Well, people have a lot of respect for this prime minister. He's a respected man. And I know he's a tough man. But he's a respected man, and he's done the right thing, according to many people, on immigration. And you look at some of the problems they have in Europe that are tremendous, because they've done it a different way than the prime minister. But I'll let him speak to that question.
Mr. Prime Minister, please.
ORBAN: From the people, by the people, for the people. This is the basis for the Hungarian government. It's a government that is elected by the Hungarian people several times. We're happy to serve our nation.
UNIDENTIFIED REPORTER: What about democratic reform, sir?
ORBAN: We have a new constitution accepted in 2011 and it's functioning well.
UNIDENTIFIED REPORTER: Mr. Orban --
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TRUMP: Don't forget, they're a member of NATO. A good member of NATO. I don't think we can really go into too much of a discussion unless that's mentioned.
Yes?
UNIDENTIFIED REPORTER: You talked about transparency, sir. If you're transparent, why block the House Democrats?
TRUMP: Because they're asking for things that they're not entitled to. I could ask them -- I assume, if they ask me, I could ask them for the same kind of thing. They wouldn't want to do it. All they're trying to do is win an election in 2020. I think we're in good shape. We have the strongest economy we've ever had. We have the single best employment numbers we've ever had and unemployment numbers.
It's very interesting, but Mr. Prime minister, as of today, we have the most number of people working in the United States that we have ever had at any time in the history of our country. Almost 160 million people are working. That's a big number.
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ORBAN: Congratulations.
TRUMP: I just saw the final number. We're close to 160 million people. If you look at African-American, Asian, Hispanic unemployment, it's the lowest number it's ever been. So we're doing really well. And all the Democrats want to do is find any way they can to stop it.
They're putting their own personal goals ahead of the country. You can't do that. You can't do that. And we have a wonderful attorney general. He's done a very good job and I'm sure it will all work out.
UNIDENTIFIED REPORTER: On your campaign, will you commit to not using any information stolen from a foreign adversary? (INAUDIBLE)
TRUMP: Well, I never did use, as you probably know. That's what the Mueller report was all about. They said no collusion. And I would agree to that. I don't need it. All I need is the opponents I'm looking at. I'm liking what I see.
UNIDENTIFIED REPORTER: Mr. President, are you concerned about the attack -- (INAUDIBLE)
TRUMP: We'll see what happens. It's going to be a bad problem for Iran if something happens. I can tell you that. They're not going to be happy. They are not going to be happy people.
UNIDENTIFIED REPORTER: What do you mean by that?
(CROSSTALK)
TRUMP: You can figure it out yourself. They know what I mean by it.
OK, does anybody else have a question other than these two? Any questions for the prime minister? Are there any questions for the prime minister, please?
UNIDENTIFIED REPORTER: Tell us about these American citizens that were rescued by the French in Africa?
TRUMP; Yes. The French did a great job.
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TRUMP: The French did a great job. We appreciate it very much. And I've already communicated that feeling. We worked with them on intelligence, and we were able to get that person back. And we thank the French very much. Great job.
UNIDENTIFIED REPORTER: (INAUDIBLE QUESTION)
TRUMP: I don't want to tell you that now. I'll tell you at some later date. I'm sure.
OK?
[14:50:03] UNIDENTIFIED REPORTER: Can you elaborate on -- (INAUDIBLE) -- where the money is coming from?
TRUMP: Well, it's being devised right now. It's something that has taken place over the years. And if you would like, speak to Sonny Perdue, Department of Agriculture. We love our farmers. We take care of our farmers. Our farmers have been incredible. No country can get in the way of our farmers. Our farmers are patriots and have done a fantastic job. Our farmers will be well taken care of.
Thank you all very much. Thank you.
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TRUMP: Thank you very much.
(CROSSTALK)
TRUMP: Thank you.
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BALDWIN: We'll analyze a bunch of what you heard. But out of the gate, I'll say no. On the U.S. economy, the president is continuously wrong on the point that he keeps making that the strong GDP is a direct result of the tariffs on China.
Let me cite Mark Zandi, chief economist, Moody's Analytics. Mark's own words, "No, the tariffs had nothing to do with Q1 GDP. GDP was largely an impact in the surge of inventory as businesses stockpiled for fear of a trade war." There you go.
Looking at the markets, really down still today as a result of China's retaliation.
Let's start there Gloria Borger and Abby Phillip, who have been waiting in the wings and listening to the president with me.
Gloria, listening to President Trump, again, trying to spin these tariffs as a good thing for the U.S. consumer.
GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: Right. Trying to -- because it's his policy, and he's sticking to it. He admitted it would hurt the farmers. He said we're going to come up with a $15 billion subsidy to farmers so they're not being hurt. And so at least he admitted that.
I am wondering if Chuck Grassley, of Iowa, has been whispering in his ear. The Senator has been vocal in how the tariffs would affect farm states. Your other point, he can't seem to get off of this point that the way he describes tariffs, is that it's good for the American people when, in fact, importers end up paying for it.
BALDWIN: Abby, to that point, you know, he says the U.S., we're in a strong position. This is after China has raised tariffs on $60 billion worth of U.S. goods. How do you square this?
ABBY PHILLIP, CNN WHITE HOUSE CORRESPONDENT: Well, this is a president who likes tariffs. He quite simply believes that tariffs are effective as an economic policy. He believes that they are effective leverage in negotiations with countries around the world not just with China but also with Europe as well.
And so when he's at this moment where talks have broken down between the Chinese and the American negotiators, President Trump keeps coming back to what he has been saying for years. He thinks tariffs are going to bring money into U.S. coffers and allow him to create additional income into the federal government that he can turn around and redirect to farmers at $15 billion that Gloria discussed.
And he believes since the United States is in such a strong economic position that 3.2 percent GDP number gives them much of an ability to be in this kind of tense tariff standoff with China where, even though both sides are hurting, the president believes China will be hurting more. But the problem for the rest of the economy is, when does this all end, and does it all end.
And by the sound of it, President Trump says he likes where we are right now. It does not sound like President Trump is particularly eager to pull back on these tariffs. And that is what has spooked Wall Street and spooked economists and manufacturers across the country.
BALDWIN: We'll get an American businessman to react to all of this and see if he sees it as a good thing in a moment.
I want to ask Gloria, back to you, it's a favorite president catch phrase, we'll see what happens. Says it all the time with regard to a multitude of subjects. But when he's asked about a potential conflict with Iran, right, the U.S. sent the U.S. carrier strike group to the Persian Gulf to send a message. When he's asked about Iran and says, we'll see what happens, how does that resonate?
BORGER: Well, it shouldn't make people feel comfortable. Because it seems like he's not willing to talk about his policy. And he also went onto say that Iran's not going to be happy. And so it is a little bit of saber rattling here. It's not comforting, I would think to the American people.
And it also makes you wonder, what is the policy, what is the policy now, and where are we heading with respect to Iran. I think, at this point, nobody seems to know, and it hasn't been explained to the American people or, in fact, to members of Congress who have been complaining about the fact that they're not getting enough briefings on this matter.
[14:55:18] BALDWIN: How about the man sitting next to him, Abby, for people who aren't as familiar with the P.M. of Hungary, a man who has yet to have a one on one with the president since 1998. He's been iced out by Bush, Obama. Who is he? And why is President Trump trying to get pointers from him?
PHILLIP: Well, Orban is someone who President Trump believes is a kindred soul on the world stage. But the problem is, as you pointed out, he has not had this kind of welcome in Washington in about two decades now.
That's a reflection of the fact that U.S. presidents of the past have believed that Hungary is sliding toward anti-democratic practices and have wanted to try to send a signal that would slow it down. Here's President Trump embracing a man who has embraced his rhetoric on immigration, who has -- who, in President Trump's words today, is controversial, just like he is.
The kind of controversy is not limited to this idea of whether immigrants should come in Hungary or not come into Europe or not. It also is about a free press in Hungary. It's about an independent judiciary. It's about checks on his power. And I think this is what has caused a lot of alarm as President Trump is now embracing this man.
He was asked even in that spray, what about the slide of democracy in Hungary. President Trump said he's doing a great job. He's a member of NATO. He's respected all around Europe. But I think it was absolutely no discussion about some of those real questions people have had about the anti-democratic practices that seem to be flourishing there.
It's one more example of what President Trump has been doing the last two and a half years, embracing the people with questionable democratic values, and just bringing them into the fold.
BALDWIN: Yes.
BORGER: And don't forget. He's a man -- Orban is a man who wants to establish a kind of European ethno state. There was one quote of his that struck me, Brooke. It is, "We must state that we do not want to be diverse." He's talking about Hungary, obviously. "We do not want our own color, traditions, and national culture to be mixed with those of others." That's the man sitting next to the president.
BALDWIN: The man sitting next to the president.
BORGER: Whom the president praised.
BALDWIN: There you have it.
Gloria, thank you.
Abby, thank you.
Back to the U.S. economy. We will talk live to an American business owner to respond to the president's remarks as we heard into the last hour of trading on Wall Street.
Plus, just in, Actress Felicity Huffman just made her plea in that massive college admissions scam. Hear what just happened in court.
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BALDWIN: We're back. You're watching CNN.
Major developments in the U.S. trade war. President Trump announced a meeting next month with the Chinese president.
And moments ago, President Trump responded to the new higher tariffs China imposed on the U.S. today sending the Dow plunging by triple digits.
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[15:00:07] This is a very positive step. I love the position we're in.
