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Early Start with John Berman and Zoraida Sambolin
Trump: New Tariffs On Mexico Over Immigration; A.G. Barr Breaks With Trump On Treason Accusation; Co-Champs Share Scripps National Spelling Bee Honors. Aired 5:30-6a ET
Aired May 31, 2019 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[05:30:35] CHRISTINE ROMANS, CNN ANCHOR: The president picks another tariff fight. This time, it's over border security with Mexico. But is he putting his own trade deal in jeopardy?
(BEGIN VIDEO CLIP)
ROHAN RAJA, CO-WINNER, SCRIPPS NATIONAL SPELLING BEE: O-D-Y-L-I-C, odylic.
(END VIDEO CLIP)
DAVE BRIGGS, CNN ANCHOR: Odylic, one of eight words spelled correctly by eight kids from six states on a historic night at the National Spelling Bee.
(BEGIN VIDEO CLIP)
JAN CRAWFORD, CHIEF LEGAL CORRESPONDENT, CBS NEWS: You don't think that they committed treason?
WILLIAM BARR, U.S. ATTORNEY GENERAL: Not as a legal matter. They don't realize that what they're doing is really antithetical to the democratic system we have.
(END VIDEO CLIP)
ROMANS: Is it antithetical to democracy to investigate election interference? Plus, well Bill Barr says Robert Mueller went wrong on obstruction.
BRIGGS: And, archrivals on the same page. What has Ted Cruz and Alexandria Ocasio-Cortez joining forces?
Welcome back to EARLY START, everybody, and happy Friday. I'm Dave Briggs.
ROMANS: It is Friday. I'm Christine Romans. It is 31 minutes past the hour, but there's a lot of news on this Friday.
The tariff man is back. President Trump threatening tariffs on Mexico in less than two weeks to get action on border security. The first round of tariffs would start at five percent, June 10th, and escalate each month all the way up to 25 percent by October first if Mexico doesn't slow the number of migrants coming into the U.S.
One big question -- could this derail the president's trade deal with Mexico and Canada, the USMCA? Just yesterday, the administration tried to jumpstart the approval process.
The U.S. trades a lot with Mexico. Many U.S. companies rely on Mexico as a key part of their supply chains. The U.S. imported almost $350 billion in goods from Mexico last year. Mexico also the largest supplier of agricultural imports -- $26 billion in 2018 -- and a huge export market for U.S. producers.
Now, remember, Mexico will not pay these tariffs. American importing companies and then, consumers, will.
Investors reacting to the threat from the president. You can see Dow futures are down more than one percent this morning. And, Asian markets tumbled. European markets closed -- opened lower as well.
Look, the president has grown frustrated about the border issue amid an increase in illegal crossings. Hours before this tariff announcement, DHS announced the largest group of migrants ever apprehended by border patrol on Wednesday. More than 1,000 detained by El Paso sector border patrol.
Not clear the White House has the legal authority to impose tariffs on this scale and not everyone is on board.
Iowa Sen. Chuck Grassley slammed the president's move. "Trade policy and border security are separate issues," he says. "This is a misuse of presidential tariff authority."
In a letter to the president, the Mexican president called for dialogue, saying he doesn't believe in eye-for-eye -- an eye for an eye retaliation.
BRIGGS: OK, let's talk tariffs with "Washington Post" congressional reporter Rachael Bade, a CNN political analyst. Good to see you, Rachael.
ROMANS: Hi, Rachael.
RACHAEL BADE, CNN POLITICAL ANALYST, CONGRESSIONAL REPORTER, THE WASHINGTON POST: Good morning.
BRIGGS: So, that movie, "My Big Fat Greek Wedding" -- the dad, he sprays Windex on every problem. And that's basically the president's tariffs. No matter what the problem he sprays tariffs on it.
BADE: You got a zit? Got a zit?
BRIGGS: So, that amounts to a $17 billion tax on U.S. businesses and consumers. Where are Republicans, beyond Chuck Grassley, and is this a serious proposal or just an effort to distract? BADE: Well, we'll have to see. I mean, Republicans traditionally hate tariffs. Trump, obviously, loves them and so he's put them in a bind with his tariff threats and actually going through on tariff threats with a number of countries.
What's clear in this situation is that Trump has been unable to get the results he wants at the border. He has used an emergency declaration to build the wall, going around Congress. He has fired and got rid of the top leadership of the homeland security department. He's made threats to countries, saying if you don't get control of your migrants, I'm going to cut off aid.
Nothing is working, and so what you're seeing here is the president lash out and try something new. But he's really playing with fire her because the economy is doing very well.
ROMANS: Yes.
BADE: You guys just mentioned that Mexico is one of our top trade partners. And, this is going to upset his own party. So, we'll just have to see how many --
ROMANS: Well, what -- and his trade deal. I mean, Rachael, pull back the curtain for me.
[05:35:01] BRIGGS: Yes.
ROMANS: Just yesterday, people were caught off guard on Capitol Hill because they were -- they were trying to push forward some administrative moves to get that USMCA going. The president's own trade deal would make this kind of a move illegal.
BADE: Exactly, but that hasn't stopped him from making the threat in the past. I mean, a few months ago he did something similar where he threatened Mexico. I think it was a 25 percent tariff on cars and that was, again, related to immigration.
It's just he sees any way he can sort of put pressure on other countries.
ROMANS: Right, where he can find leverage.
BADE: Just sort of force them on immigration. Yes, he's just -- he's flailing out --
ROMANS: Looking for leverage.
BADE: -- looking for leverage -- exactly.
BRIGGS: OK, from trade to treason. Bill Barr sitting down with Jan Crawford, of CBS, and talking about investigating the investigators. Here's what he -- the A.G. said.
(BEGIN VIDEO CLIP)
CRAWFORD: You don't think that they committed treason? BARR: Not as a legal matter, right.
CRAWFORD: But you have concerns about how they conducted the investigation.
BARR: Yes, but sometimes people can convince themselves that what they're doing is in higher interest, the better good. They don't realize that what they're doing is really antithetical to the democratic system we have.
(END VIDEO CLIP)
BRIGGS: Is it antithetical to democracy, and what is the effort here by the attorney general?
BADE: I mean, look, I feel like he is sending some serious warning signs to the people who were part of the beginning of the Russia investigation. He's used the word "spying" before. And right there in that clip, he says it's not treason in the legal sense. Well, that still is like shocking language that he's suggesting, perhaps, you could argue that.
And again, this is just conservatives -- Trump allies. They have found an ally in Barr unlike they could have ever imagined.
ROMANS: Yes.
BADE: And again, I just think that this is -- it is just foreshadowing that this investigation of the investigator -- you know, Republicans who are aligned with Trump are really going to love the results, and it could be a problem for some law enforcement.
ROMANS: Meanwhile, Democrats struggling with impeachment and where they want to be on the impeachment spectrum.
And last night, the Speaker of the House talked about this with Jimmy Kimmel.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA), SPEAKER OF THE HOUSE: As we go down this path, the American people will know the truth and the president will be held accountable. But you have to go down that path when you're as ready as you can possibly be, and you don't know that until you go down the path.
JIMMY KIMMEL, HOST, ABC "JIMMY KIMMEL LIVE!": Will we be ready before the year 2020?
(LAUGHTER)
PELOSI: Yes, we will.
(END VIDEO CLIP)
ROMANS: What are you hearing from Democrats in Trump districts, specifically, about where they are going down this path?
BADE: So, Trump districts are the reason -- one of the big reasons why Pelosi has not signed off on an impeachment push.
This week, when Mueller went to the mics and started talking publicly for the first time, there was this split-screen going on where Washington was talking about the Russia investigation, and Mueller, and impeachment.
And now, in Trump districts where myself and my colleague were, nobody was talking about it -- not even a single question at a town hall that I attended -- a 90-minute town hall.
And even when you talk to Democrats in these swing districts -- these districts that are important to Pelosi keeping her majority -- most of them are urging caution, just like Pelosi. All but one of them that I interviewed at the town hall I attended so don't do it -- that it's going to help Trump and it will take away from the agenda that they want to focus on.
So, again, Pelosi is just very wary and she knows that there are less vocal voices who are really concerned about this.
BRIGGS: Peggy Noonan, a Republican, writes in "The Wall Street Journal" that Democrats should censure the president -- shame him in a sense. The only president that's been done to is Andrew Jackson. She feels Republicans in the Senate would actually vote for that --
ROMANS: Oh.
BRIGGS: -- which I don't know about that.
Rachael Bade, good to see you, my friend.
ROMANS: Nice to see you.
BRIGGS: Enjoy the weekend.
BADE: Yes, thank you.
BRIGGS: All right. There are no words -- literally, none. A big loser in this year's Scripps National Spelling Bee is the dictionary.
(BEGIN VIDEO CLIP)
RAJA: O-D-Y-L-I-C, odylic.
(END VIDEO CLIP)
BRIGGS: This year, not just one, two, three, four, five, six or even seven, but eight winners of the annual competition. They survived 20 rounds on a historic night.
ROMANS: Over the last five rounds, no one made mistakes. This is the first time more than two contestants won. Each will receive $50,000 in cash, a Scripps trophy, and trips to Hollywood and New York to do the talk show rounds.
Merriam-Webster tweeting, "The Dictionary concedes," adding, "that it is so proud."
Perhaps the biggest prize for us, anyway, all eight will be on "NEW DAY" this morning showing how they can out spell John Berman and Alisyn Camerota.
BRIGGS: All right, here's a political pairing you probably never thought you'd see. Alexandria Ocasio-Cortez and Ted Cruz joining forces, working together to ban former lawmakers from taking paid lobbying positions.
[05:40:00] They found common ground -- where else -- on Twitter, where Ocasio-Cortez wrote, "If you are a member of Congress and leave, you shouldn't be allowed to turn right around and leverage your service for a lobbyist check."
Cruz replied, "On this point, I agree with AOC. The swamp would hate it but, perhaps, a chance for some bipartisan cooperation."
The New York Democrat tweeted that if the bill focused only on lobbying, she would spearhead the effort with Cruz. He replied, "You're on."
(BEGIN VIDEO CLIP)
MISSOURI ANTI-ABORTION LAW PROTESTERS: Shame on you.
(END VIDEO CLIP)
ROMANS: Protests in Missouri over a new anti-abortion law. Today could be he the last day for abortions in the state since Roe v. Wade became law.
Right now, the Missouri courts are trying to decide whether to renew Planned Parenthood's annual license.
Take a look at this sign at this rally in St. Louis. It reads, "If you cut off my reproductive choice, can I cut off yours?"
And yesterday, in Louisiana, Democratic Gov. John Bel Edwards signed a bill banning abortions once a heartbeat is detectable, with no exceptions for rape or incest. A fetal heartbeat can be detected as early as six weeks in the pregnancy. That's before most women even know they are pregnant.
BRIGGS: More companies threatening to scale back their business deals with Georgia if the state's new anti-abortion law goes into effect.
Executives from Netflix and Disney spoke up earlier this week. Well now, CBS, Showtime, NBCUniversal, AMC Networks, Sony Pictures, STX, Viacom, and WarnerMedia all say they could reconsider their business in the state.
WarnerMedia has thousands of employees in Georgia, many at CNN headquarters in Atlanta.
All the companies would be giving up Georgia's generous tax incentives if they pull out. The law take effect -- takes effect January first.
ROMANS: All right. Breaking overnight, levee failures forcing evacuations in Missouri and Arkansas. Officials say overflow from the Mississippi River chased hundreds from their homes in West Quincy, Missouri. That's near the Illinois border.
And overnight, another levee in Dardenelle, Arkansas breached. At least 500 homes affected by the flooding so far.
The Holla Bend levee, about five miles southeast, began leaking water overnight as well. People there being asked to consider evacuating.
For some context, check out this -- before and after view from a dam near the Arkansas River. On top is January and below -- wow -- this week. President Trump has approved an emergency declaration.
Thursday did see some welcome relief from the tornadoes. Only two have been reported so far after two straight weeks of bad storms.
ROMANS: All right. Do you feel like you have too many streaming services? I asked the Disney chief where the market's headed.
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BOB IGER, CEO, THE WALT DISNEY COMPANY: You're going to see a lot of change in media due to technological disruption.
(END VIDEO CLIP)
ROMANS: More from Bob Iger, next.
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[05:47:00] ROMANS: All right. Opening today in California, Galaxy's Edge, the largest Disney theme park expansion ever. It's a new land of the planet Batuu with a new story breathing new life into the "Star Wars" franchise just as the Skywalker saga ends with the film "The Rise of Skywalker" in December.
This is all new material for a franchise that will feed Disney's entree into the streaming wars. Disney Plus debuts in November. It's $6.99 a month.
It's a crowded market, so where does Disney's CEO Bob Iger see the service fitting in?
(BEGIN VIDEO CLIP)
ROMANS: And I've heard you say it's going to be about choice. So, you've got Hulu, you've got ESPN Plus, you've got Disney Plus. Is this -- what is this going to look like for consumers who want -- who want choice from Disney content? IGER: Well, we believe that all three will offer consumers different kinds of programming. I think that you're going to see a lot of change in media due to technological disruption and that will create change in consumer behavior.
(END VIDEO CLIP)
ROMANS: And, Iger says you can expect even more change.
(BEGIN VIDEO CLIP)
ROMANS: What inning are we in, in this streaming evolution because I'm not sure if this is the second inning or we're halfway through this ballgame? I mean, there's Netflix, Apple, Amazon, WarnerMedia. I mean, there's so -- there's so many different players. Is it going to continue to evolve?
IGER: Yes. I think we're in the early innings --
ROMANS: OK.
IGER: -- and I think it's likely that direct-to-consumer over-the-top platforms that are focused more on program consumption versus channel consumption are likely to grow significantly over time.
ROMANS: Right.
IGER: And I think you're going to see consolidation on the linear channel front.
So, I think you're in -- when I say later innings, I don't want to suggest that it's not going to be an extra-inning game when it comes to the channel business. But I think that's a mature business --
ROMANS: Yes.
IGER: -- and consolidation is ahead and necessary as a consumer migrates to a different form of television consumption.
(END VIDEO CLIP)
ROMANS: And, of course, he's in both sides of that market so it's fascinating to get that perspective there.
In other business news, Uber reported earnings for the first time since going public, saying it lost more than $1 billion in the first quarter. It's the latest sign Uber had a long road -- has a long road ahead to profitability.
Uber posted revenue of $3.1 billion for the first quarter, up 20 percent from the year prior. But its ridesharing revenue -- its core business grew just nine percent.
Uber's rival Lyft also struggling, losing $1 billion in the first quarter. All right. There are meatless burgers, so is plant-based chicken next? Kentucky Fried Chicken taking an interest here. Chicken isn't a big trend in the plant-based protein market yet, but KFC's president says it's looking at suppliers and it could test out a menu item featuring this protein.
Consumers are increasingly interested in eating plant-based protein for health and environmental reasons, and the market's growing quickly. One research firm says the market could reach $2.5 billion by the year 2023.
BRIGGS: OK. CNN has learned Boeing has no plans to introduce hands- on flight simulator training for pilots of its troubled 737 MAX jets. The company proposing to bring pilots up to speed by way of a computer-based training program. That has led to potential to save the airlines time and money.
[05:50:10] Pilots and aviation analysts criticized Boeing for failing to mandate simulator training for pilots in the wake of recent crashes of the Lion Air and Ethiopian Airlines jets, which killed 346 people.
The FAA has not yet announced its decision on final training requirements.
ROMANS: All right. It turns out a dead man's computer files could be new evidence of political motives for adding a citizenship question to next year's census.
Now, groups suing to block the question point to a newly-disclosed 2015 study by Thomas Hoffeller, a Republican redistricting expert. Now, he wrote that drawings new districts based on citizens of voting age, not residents, would help Republicans and non-Hispanic whites.
The challengers also say Hoffeller shared his view with a top adviser to the Commerce secretary who proposed the question.
Now, Hoffeller -- after Hoffeller died last August, his estranged daughter went through his belongings where she found that census study.
The Justice Department says Hoffeller's study played no role in the decision to add the question.
We'll be right back.
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[05:55:05] BRIGGS: For the third time in less than a week, a House Republican has blocked the passage of a multi-billion-dollar storm and wildfire disaster relief bill. Tennessee Republican John Rose's objection yesterday blocked the bill from being approved by unanimous consent because he was critical of the $19.1 billion price tag.
Congressman Thomas Massie, of Kentucky, objected Tuesday. And, Congressman Chip Roy, of Texas, objected last Friday.
The legislation is still expected to have the votes to pass when the House returns to Washington next week.
Growing concern for a Connecticut mother of five missing for nearly a week now. Fifty-year-old Jennifer Dulos was last heard from last Friday shortly after she dropped her children off at school.
The "Hartford Courant" reports she was in the middle of a bitter 2- year divorce and custody battle. Police sources tell the "Courant" investigators searching the home found traces of blood and other evidence. They now suspect she may have been the victim of a violent crime.
Her children are all fine and under the protection of an armed guard at their grandmother's New York apartment.
New details about the investigation of the hoax hate crime reported by "EMPIRE" actor Jussie Smollett. Documents just unsealed by the Chicago Police Department reveal that after officers showed Smollett pictures of the two brothers suspected in his alleged attack, Smollett responded that the brothers could not have been the attackers, saying they were, quote, "black as in."
The documents also say Smollett discussed buying marijuana, ecstasy, and cocaine from the brothers.
We've also learned it only took eight days from Smollett's arrest for prosecutors to tell Chicago P.D. they would let Smollett go with a fine and community service. The decision was not announced for a month.
A mysterious shipwreck from the 1800s discovered by accident in the Gulf of Mexico. Explorers from NOAA were testing out seafloor equipment two weeks ago when they picked up a sonar reading 160 miles off the coast of Florida and nearly 1,500 feet down.
A remotely-operated vehicle was sent to the location. It found a 124- foot ship believed to be a schooner with the numbers 2109 along the edge of the rudder. Evidence suggests the ship may have caught fire before sinking.
You might want to cover your kid's eyes and ears for this next one. The Air Force says the resemblance of these jet contrails to a giant penis in the sky is purely coincidental.
The contrails appeared during an F-35 fighter jet training exercise Tuesday. Officials at Luke Air Force Base in Arizona say they reviewed the training tapes and concluded the pilots were, in fact, conducting standard maneuvers. They say there was no nefarious or inappropriate behavior during the training flight.
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ALEX TREBEK, HOST, "JEOPARDY!": That gives him $58,612 and now, a new total of $2,382,583 for 31 days.
(END VIDEO CLIP) BRIGGS: Thirty-one straight wins and counting for James Holzhauer. Thursday's haul leaving him $138,000 shy of Ken Jenning's all-time record.
Holzhauer and Jennings are the only two players to eclipse $2 million in winnings. The professional gambler from Vegas accomplished the feat in less than half the episodes needed by Jennings.
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NBA ANNOUNCER: To Thompson, drives off balance, shot misses, rebounds -- it's up and in.
(END VIDEO CLIP)
BRIGGS: The Toronto Raptors taking game one of the NBA Finals, 118- 109 over the Golden State Warriors.
Toronto's Pascal Siakam pouring in a playoff career-high 32 points on 14 of 17 shooting. During one stretch, he drained 11 straight shots.
After the game, Raptors superfan rapper Drake had some words and a face for Draymond Green.
Game two, Sunday night in Toronto.
Thanks for joining us. I'm Dave Briggs. "NEW DAY" starts right now.
(BEGIN VIDEO CLIP)
TRUMP: I've exposed corruption like nobody knew existed.
UNIDENTIFIED MALE: He is ordering a new investigation of the highest officials of the FBI.
CRAWFORD: You don't think that they committed treason?
BARR: Not as a legal matter.
UNIDENTIFIED MALE: The answer to that question should have been an unequivocal no.
MANU RAJU, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Frustrated by illegal immigration, President Trump is threatening to use tariffs as a weapon against Mexico.
UNIDENTIFIED FEMALE: Tariffs work if you have patience at the plate.
UNIDENTIFIED FEMALE: Trump thinks he's trying to impress his base, but this will affect his base very directly.
RAJA: Odylic.
BRIGGS: An unprecedented 8-way tie at the National Spelling Bee.
(END VIDEO CLIP) ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.
JOHN BERMAN, CNN ANCHOR: They beat the dictionary.
ALISYN CAMEROTA, CNN ANCHOR: They beat the dictionary. They broke the spelling bee.
BERMAN: Yes, completely broke it. Eight winners of the spelling bee because there are not enough words for America's youth.
CAMEROTA: That's what happened. The spelling bee ran.
END
