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The Lead with Jake Tapper

Musk Accuses Trump of Being in Epstein Files as Feud Boils Over; U.S Supreme Court Releases Flurry of Opinions; Judge Threatens to Remove Combs from Court for Nodding at Jury. IDF: Bodies Of Two Israeli-American Hostages Recovered From Gaza. Aired 6-7p ET

Aired June 05, 2025 - 18:00   ET

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

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[18:00:00]

PHIL MATTINGLY, CNN ANCHOR: Welcome to The Lead. I'm Jake Tapper.

This hour, an absolutely stunning brawl right now between President Trump and former first buddy Elon Musk is playing out for the whole world to see. After a lot of back and forth, Musk's companies have lost billions. He's even calling for Trump's impeachment. How far will this fighting go? Could it sink the entire Trump agenda?

Plus, what we're learning about a military operation in Gaza that recovered the bodies of two Israeli American hostages, Judi Weinstein Haggai and Gadi Haggai. They will finally be laid to rest after being murdered by the terrorists of Hamas. But what about the other hostages, those dead and alive still being held by the terrorist group?

Also, a new court filing reveals alleged entries from Luigi Mangione's diary, entries that he was carrying when he was arrested. What he allegedly wrote in the months and weeks before he's accused of killing the CEO of UnitedHealthcare.

And the company behind Pampers, Bounty paper towels, Tide laundry detergent announcing that they're going to lay off thousands of employees and raise prices. And they say it's because of the economic challenges posed by the Trump tariffs.

The Lead Tonight, the Donald Trump-Elon Musk relationship has so disintegrated. Then Musk is now accusing Trump of being in the Epstein files, though he has provided no proof of that. We have been watching this real life soap opera drama play out all day in real time, all because of Musk's criticism of the big, beautiful domestic policy bill the president's trying to push through Congress. He says it doesn't cut spending enough.

Things started getting intense just before high noon in the Oval Office. In the space of less than 10 minutes, President Trump went from praising his former first buddy, Elon Musk, to accusing him of possibly suffering from Trump derangement syndrome. (BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: I've always liked Elon and as always, I'm very surprised.

Look, Elon and I had a great relationship. I don't know if went well anymore. He knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem until right after he left.

And he hasn't said bad about me personally, but I'm sure that'll be next. But I'm very disappointed in Elon. I've helped Elon a lot.

And I'll be honest, I think he misses the place. People leave my administration and they love us. And then at some point, they miss it so badly. And some of them embrace it, and some of them actually become hostile. I don't know what it is. It's sort of Trump derangement syndrome, I guess they call it.

(END VIDEO CLIP)

TAPPER: Let's bring in CNN Anchor, Chief White Correspondent Kaitlan Collins. Kaitlan, Elon Musk not at the White House but apparently watching all of this today reacting in real time, and now this unfounded accusation or at least unproven accusation that Trumps in the Epstein files?

KAITLAN COLLINS, CNN ANCHOR AND CHIEF WHITE HOUSE CORRESPONDENT: Yes, he obviously didn't really elaborate on that, Jake, but then he did follow up on it and say essentially, you know, clip and say this is going to be born out to be accurate when he posted that, saying that that is where, the reason that you've seen a lot of the right pretty upset that they have not gotten more released from the Epstein files, something that that a lot of people wanted when Trump took office and Pam Bondi became the attorney general.

But, Jake, that is just one small part of this. It was probably one of the most explosive things that Elon Musk has said since this feud broke out. But we went from the president there in the Oval Office saying that Elon Musk hadn't criticized him personally, that he would actually rather he criticized him than criticized the bill here that Elon Musk is trying to get killed on Capitol Hill.

And very quickly, this expanded into personal attacks between these two men, where Musk was making that accusation about Trump being in the Epstein files, saying that is why they have not been released yet, also saying that the president would not have won the election had it not been for Elon Musk's involvement in the 2024 race, and also, Jake, agreeing that Trump should be impeached from office and replaced with Vice President J.D. Vance. And you've seen just how much this has escalated since then as this has gone on.

And, Jake, I've been talking to people in Trump's world and inside the West Wing all day. The president had been very clearly losing patience with Musk after he was going out and not just, you know, lightly criticizing the bill. He was going from saying it was a bad bill to saying it should be outright killed. And then today, obviously the dam broke on that point.

And there was a question, as Trump was going after Musk in the Oval Office, and Musk was responding in real time on Twitter, of whether or not this could be brokered into peace of whether or not this could be resolved. But then after Elon Musk posted that thing about the Epstein files, I talked to several people in Trump's world who said they don't believe that this situation can be repaired and this relationship between the two of them just watching this play out.

[18:05:00]

It's something that a lot of people predicted. I'm not sure anyone expected though, Jake, that it would happen like this or over something like this to turn into such a deterioration where just on Friday night, the president was gifting Elon Musk a key in the Oval Office of the White House and praising him and to now this remarkable breakdown in their relationship.

Jake, I mean, just to show you this, Jay McMichael, our excellent photographer at the White House, spotted Elon Musk and the red Tesla that he sold to President Trump just a few months ago when they had basically that Tesla showroom on the South Lawn of the White House when the Tesla stock was not doing well. That is still parked on West Exec. That is right outside the West Wing entrance, Jake. And that was just a few hours ago that Jay McMichael spotted that.

It shows you just how much the Musk imprint is very much still on the White House despite what we're seeing play out largely on Twitter and Truth Social tonight.

TAPPER: Yes. Why did Tesla drivers -- why -- how come nobody ever parks within the lines? That's my first question about that. But the other thing is --

COLLINS: That's your question here, Jake, after everything --

TAPPER: No. Well, they tend to park with a certain arrogance. But beyond that, I will say there -- also Musk retweeted somebody posted video of Trump and Jeffrey Epstein, the notorious child trafficker and pedophile, dancing from decades ago, a clip from MSNBC. So, you have the Political Horseshoe Theory in operation, Elon Musk retweeting MSNBC video, both of them trying to go after Trump in their interesting ways.

Kaitlan Collins, thanks so much. I appreciate it. And please don't miss Kaitlan on her show. It's the Source with Kaitlan Collins. It's tonight and every weeknight, 9:00 Eastern only on CNN.

Among those watching the back and forth between President Trump and Elon Musk are Republican senators who have the big, beautiful bill in front of them. They have the power to pass it or to reject it or to change it.

Let's go to CNN's Manu Raju on Capitol Hill. So, Manu, this isn't just tabloid fodder, if tabloids were to cover divorces like this one. This has policy ramifications. MANU RAJU, CNN ANCHOR AND CHIEF CONGRESSIONAL CORRESPONDENT: Yes. And there's a big distraction too, really at the worst possible time for the Republican leaders who are trying to get their members in line, particularly members who are concerned about the deficit projections under this bill and who are aligned with those same concerns that Elon Musk is now voicing and attacking this bill relentlessly over, that the projections suggested this could raise the national deficit by trillions of dollars over the next decade. They were supportive of this bill, say they would generate economic growth and that those deficit projections are misguided.

But nevertheless, there are major concerns and there are some questions too about whether they will ultimately get the votes in the Senate to pass this bill. There's some key senators, including Senator Ron Johnson of Wisconsin, who I caught up with in the aftermath of this feud between Musk and Trump. And I asked him whether he is aligned still with his concerns about with Trump, with Musk, with his concerns over the deficit, or if he's starting to get behind Donald Trump. And he indicated that there's still a significant amount of work to do to win his backing.

(BEGIN VIDEO CLIP)

SEN. RON JOHNSON (R-WI): It's easy to be the parent that says, you know, we're going to go to Disney World. It's hard to be the parent that says, yes, but we can't afford it.

President Trump did point out that, you know, Ron, you're being so negative. You know, I want to be part of the solution.

I want to get to yes. But to get to, yes, I need a -- again, I need what I always need. I need a commitment to return to a reasonable pre- pandemic level of spending.

RAJU: But is it hurtful to have him and Trump in this -- engage in this battle of this bill? Is this helpful right now?

JOHNSON: Well, I'd prefer it's not happening. But, again, I've been pretty tough too. This is hard, what we're trying to do.

(END VIDEO CLIP)

TAJU: And I just caught up with the speaker of the House too, Mike Johnson, who pushed back against Musk's attacks and said that he believes that ultimately this bill will become law. But no doubt about it, Jake, this comes at a time when not only will they have to try to get this out of the Senate, but when it comes back to the House, those same deficit hawks who are concerned about the impact this bill could have on the debt, will have another chance to vote for this bill. And some are warning they'll vote against it if it does not go further in cutting spending. Jake?

TAPPER: All right. CNN's Manu Raju on Capitol Hill for us, thanks so much.

One of the Republicans whose votes will be necessary to pass the bill joins us now, Indiana Senator Jim Banks, a Republican. Senator, good to see you, as always.

First of all I'm sorry that I even have to bring this up, but there are policy ramifications to this breakup and this Trump-Musk feud is spiraling so out of control. Musk just accused Trump of being in the Epstein files. He did not provide any evidence for that claim. What's your reaction to this all?

SEN. JIM BANKS (R-IN): Well, remember, Jake, as you've already pointed out, this started with a policy disagreement about the big, beautiful bill. And President Trump is right. We have a moral duty to do what he said he was going to do on the campaign trail and extend the Trump tax cuts on working class families. If we don't pass this bill, everyone listening to this show right now is going to see on average families a $3,000 tax hike on working class Americans, factory workers, mechanics teachers, police officers, the working men and women of this country are going to receive the biggest tax hike then that they've ever had before if this bill doesn't pass.

[18:10:19]

So, there might be policy disagreements and I believe, Jake, that the Senate is going to significantly improve this bill. There are ways that we can make up for some of the deficit concerns by adjusting the SALT tax provision and looking at other ways to eliminate waste, fraud and abuse in Medicaid and Medicare. There are other places to cut more Green New Deal subsidies from the Biden administration.

And you heard a minute ago, this has actually been a really good day for President Trump. He started the day off with a 90-minute call with President Xi in China with an agreement that they're going to get together and meet and talk about trade deals that put America first. And then you just heard Manu who talked to Senator Ron Johnson, who was a hard no before, and now he's opening the door to getting to yes on the big, beautiful bill because President Trump is working directly with senators. He's taken the high ground with Elon in the back and forth online. He's more focused on passing the big, beautiful bill to support working class families in this country. That's what matters most.

TAPPER: Well, I don't know that he has taken the high road. I mean, he's accused Elon Musk of going crazy and he's threatened to take away all of his government contracts prompting Musk to say he's going to cancel one of the -- I think one of the SpaceX contracts.

But let's turn back to the policy dispute because, you're right, it's about the big, beautiful bill. And Musk's point is that Republicans need to, quote, ditch the mountain of disgusting pork in the bill. I don't know how much pork is actually in the bill. I think there -- the real area where there would be cuts are, you know, discretionary and non-discretionary spending on Medicare, Medicaid, there's Pentagon spending. I mean, there are a lot of things that are not easy to cut, which is why this deficit is such a problem. The spending cuts actually are tough because they hit people in important ways.

But beyond that and beyond the raising of the debt ceiling by, I think, $5 trillion, do you not have any concerns that his criticism is going to impact the bill?

BANKS: Well, like I said, I think there are ways that we can make up for it. In the Senate, we can adjust certain provisions, like the SALT tax deduction. And Senator -- Leader Thune today talked about eliminating waste, fraud and abuse in Medicare, looking again, extending the work requirements on Medicaid and then killing more of the Green New Deal subsidies. And already the bill cuts $1.7 trillion of the Biden era Green New Deal subsidies. There are other places that we can cut.

But there's a big, there's a big takeaway here, Jake, and that's that you cut spending in spending deals. And this is all about extending the Trump tax cuts on working class blue collar American families. If this bill doesn't pass -- there are so many members of my own family, my friends, people back home in Indiana, a $3,000 tax increase on working class Americans in an economy where it's already tough enough, they can't take it. They can't take any more of it. And it would be a big mistake for Republicans and Democrats who allow taxes to go up on working class Americans. So, that's what this is about.

I'll give Elon so much credit, the DOGE effort. The White House this week released the first rescissions package, which is a direct result of Elon's work on DOGE. We need more of that to cut spending and then cut spending in the upcoming appropriations packages. That's where we do that. This is about extending tax cuts on the people who need it the most.

TAPPER: Well, you just brought up Medicaid. There's an analysis done by the Urban Institute that estimates that if the cuts in the bill are enacted, between a 102,000 and 116,000 adults in your home state of Indiana would lose Medicaid.

We just spoke to a woman named Jennifer Dewitt. She's in Noblesville, Indiana. She has twin 17-year-old boys who have cerebral palsy. Her son, Matthew, is on the family support waiver, and her son Jackson, who needs more extensive care, is on the health and wellness waiver. Jackson's had more than 60 hospital stays in his life, including five this year.

Jennifer says her son, Jackson, will not survive without Medicaid. Take a listen.

(BEGIN VIDEO CLIP)

JENNIFER DEWITT, MOTHER OF MEDICALLY COMPLEX CHILD: We can't take on the $3,500 a month in feeding tube supplies for our kids. We can't take on the cost of ventilators and expensive respiratory equipment for our medically fragile children. And it's terrifying to us that these are considered an optional part of Medicaid. And, you know, if cuts happen, this could be something that could be on the chopping block.

(END VIDEO CLIP)

[18:15:00]

TAPPER: Jennifer Dewitt, one of your constituents, she says, this is life or death for her son. What's your message to her?

BANKS: And my heart goes out to Jennifer. And I can tell her that these provisions will not affect her. She is someone who deserves Medicaid. The work requirements on Medicaid will affect those able- bodied men and women who aren't taking care of a sick child or a sick parent but who are able to go to work, but who don't go to work.

And the CBO and other estimates show that that's several million Americans that will be affected, 5 to 6 million Americans, another a million illegals who are on Medicaid who will be affected by these provisions. But Jennifer is someone who deserves and needs Medicaid for her son. Those are the cases that President Trump is so focused on, making sure that they won't be affected.

But those able-bodied men and women who can go to work, who don't go to work, they should be in the workforce. That's what work requirements are all about. It's good policy. It's really good policy. It's good for society. It's good for these individuals to give them value with a good job, get them into the workplace. There are a lot of exemptions and exceptions to that, but about 5 million Americans who don't go to work who should go to work and shouldn't sit at home and collect Medicaid. It's not fair to everybody else.

TAPPER: Indiana Republican Senator Jim Banks, thanks so much for your time today, sir. We appreciate it.

BANKS: Thank you.

TAPPER: The Department of Justice filed a lawsuit against the state of Texas. Then just hours later, the lawsuit was settled. How this case could impact about 19,000 students who are also undocumented in the Lone Star State.

Plus, major rulings today at the U.S. Supreme Court, including one that could have huge implications for discrimination lawsuits. We're going to break down all of these cases, next.

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TAPPER: In our Law and Justice Lead today, the U.S. Supreme Court earlier today handed down a flurry of major decisions in major cases. In one of them, the justices unanimously, 9-0, sided with a straight woman who filed a discrimination lawsuit against her employer when her gay boss declined to promote her and instead opted to promote two of her gay colleagues. That lawsuit can now proceed.

CNN Chief Legal Affairs Correspondent Paula Reid's here to explain. Paula, this ruling will make it easier for people to win discrimination lawsuits when they're not in a -- historically discriminated against minority.

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT: That's exactly right. This has been one of the biggest cases of the term, and now it will be easier to file a discrimination claim even if you are a member of a majority group.

Now you just laid out some of the facts here. This case focuses on a woman named Marlean Ames. She alleged that her boss, who was gay, passed her over for a promotion because she was straight instead promoting a lesbian co-worker. And then eventually Ames was demoted and she alleges she was replaced by a gay man.

But the fact is that in certain states, in order to file a discrimination claim, if you are a member of a majority group, you have a higher bar. And that's really what the Supreme Court was focused on here. And this was a unanimous opinion writing for the court liberal justice, Ketanji Brown Jackson, said that this has no basis in the Civil Rights Act that prohibits sex discrimination in the workplace, that there should be this higher bar. So, this will make it easier in some parts of the country to file these kinds of actions.

And I do think it's notable, Jake, that this was unanimous, given how politicized diversity, equity, and inclusion has been, particularly in this administration.

TAPPER: Yes. Important, an important message that it was 9-0. What other notable decisions did the U.S. Supreme Court hand down today?

REID: So, we had a total of six decisions today. As you know, they usually save the biggest cases for last. We did get a few more notable cases. One, the court backed Catholic charities and their effort to avoid certain state taxes. That's notable because it could expand the types of religious organizations that could receive protection under the First Amendment's protection for religion and religious organizations.

And the Supreme Court also tossed out a lawsuit for the Mexican government that was trying to hold American gun manufacturers liable for violence at the border. That could have potentially cost some of those companies billions of dollars.

Now, we expect over the next few weeks to get dozens more opinions from the Supreme Court as they wind down this term. Of course, the biggest cases this term relate to questions about gender affirming care for minors, the rights of parents to opt out of certain books in schools, and, of course, the biggest one of all, the power of judges to block presidential policies. Jake?

TAPPER: All right. Paula Reid, thanks so much.

In our National Lead, Texas is now ending in-state tuition for undocumented students. The Department of Justice sued Texas over the policy, accusing the state of discriminating against out of state students who are American citizens.

CNN's Rosa Flores delves into the details of the case.

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UNIDENTIFIED FEMALE: I am absolutely gutted and devastated. ROSA FLORES, CNN CORRESPONDENT (voice over): Julissa Arce Raya (ph) was one of the thousands of undocumented students who benefited from in-state tuition through the Texas Dream Act. She's in disbelief after that measure came to a halt on Wednesday.

JULISSA ARCE RAYA, AUTHOR, SOMEONE LIKE ME: Because of the law in Texas, I was able to attend the University of Texas at Austin. It really felt like a miracle that I would be able to access higher education.

FLORES: Now, a US citizen author and activist, she's speaking out.

RAYA: It does feel really personal and it feels really unfair for the students that are having their wigs cut off.

FLORES: While state lawmakers have been trying to repeal the law for years, the Trump administration made it happen within hours in its ongoing effort to reshape universities and crack down on immigration.

MARK JONES, POLITICAL SCIENCE FELLOW, RICE UNIVESITY'S BAKER INSTITUTE: This has effectively been a tag team with the Department of Justice serving up the softball and the attorney general hitting it out of the park.

FLORES: The U.S. Department of Justice sued Texas on Wednesday claiming the law, which passed in 2001 with broad Republican support, unconstitutionally discriminated against U.S. citizens because it provided some undocumented students with in-state tuition and public colleges and universities.

[18:25:06]

Under that law, students qualified if they had graduated from a Texas high school, had resided in the state for at least three years and provided an affidavit stating they would file to become permanent residents as soon as they were eligible.

U.S. Attorney General Pam Bondi argued that students from other states were treated like second class citizens under the program and vowed to relentlessly fight to vindicate federal law. But there was no fight. Texas Attorney General Ken Paxton settled with Trump's Department of Justice in a matter of hours, calling it a major victory for Texas.

Political expert Mark Jones says there was likely some back channeling between the administration and the state given the federal lawsuit was filed and settled on the same day.

JONES: in a matter of hours, a 24-year-old law was no more.

FLORES: The move could impact about 19,000 students, according to testimony in February by the state's Higher Education commissioner. Julissa knows what those students are going through and is calling on more Americans to speak out.

RAYA: The dreams of undocumented students aren't going to end with the end of a single law because our dreams are bigger than the loss of this country.

FLORES: Rosa Flores, CNN, Houston.

(END VIDEOTAPE)

TAPPER: And our thanks to Rosa Flores in Houston for that report.

The judge is now threatening to kick Sean Diddy Combs out of the courtroom during his own federal trial. We're checking in with our teams at the courthouse, next.

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TAPPER: Our Law and Justice Lead now, we start with a stern warning from the judge in that sex trafficking trial of Sean Diddy Combs, who slammed the defense today and said that Combs could be kicked out of his own trial if he continues to interact with the jury, telling Combs, quote, it is absolutely unacceptable, unquote.

Let's go to CNN's Elizabeth Wagmeister. She's been inside the courtroom all day. Elizabeth, what exactly happened here?

ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: A very stern warning from the judge, Jake, saying that he himself observed Sean Combs nodding vigorously at least two times during testimony today from Bryana Bongolan, who is a close friend of Cassie Ventura.

Now, the judge told Diddy's defense that this is absolutely unacceptable. This cannot happen again. Diddy's team assured the judge that it would not happen again. But as you said, he told them if it happens, he's going to be thrown out of his own trial.

Now, I do want to make the point, though, the jury was not in the room for this moment. The jury was already on their lunch break, so we are talking about it. But remember, the judge has instructed the jury not to watch the news, not to follow coverage of this. So, theoretically, if they're listening to the judge's instructions, they don't know that this happened. Jake?

TAPPER: Another key witness testifying under a pseudonym took the stand today. The judge told the jury they'll learn the identity of the witness, but in court she was only identified as Jane. What did she have to say?

WAGMEISTER: Yes. So, Jane is the government's third and final alleged victim following Cassie Ventura and Mia, who also testified under a pseudonym. Mia was that former employee. Well, Jane, similar to Cassie, was not a former employee. She is a former girlfriend, a former romantic partner. And she told the jury that her and Sean Combs began dating in early 2021, and get this, Jake, they were dating up until his arrest in 2024. So, this is a very recent relationship. In fact, Sean Combs was dating her less than a year ago, as I said, as he was arrested, they were still together. So, Jane said that things started off wonderful, but then he introduced his fantasy. That's the word that she used, that fantasy being to introduce other men into their sex life. She said that the first time that she did it, but then she told him that she did not want to do this. She said she communicated that both in person and in writing, but she said that he was paying her rent and he would threaten to stop paying her rent.

So, Jake, she'll be back on the stand tomorrow. Prosecution said she can be on the stand for up to a week.

TAPPER: All right. Elizabeth Wagmeister outside court in New York today, thank you so much.

Also in our Law and Justice Lead, a new court filing in the murder case against Luigi Mangione, the prosecutors say, reveals, quote, unambiguous evidence of Mangione's motive for assassinating UnitedHealthcare CEO Brian Thompson.

The filing includes newly released journal entries or diary entries that the prosecution says were written by Mangione. For example, an entry dated August 15th says, quote, I finally feel confident about what I will do. The details are coming together and I don't feel any doubt about whether it's right or justified, unquote, and goes on to say, quote, the target is insurance. It checks every box, unquote.

The new filing is a response to the defense team's motion to dismiss the case. Mangione has pleaded not guilty to all federal and state charges against him.

Let's talk about this with criminal defense attorney Stacey Schneider. Stacey, thanks for joining us. So, Mangione used a ghost or homemade, untraceable gun to kill, allegedly, Brian Thompson, the United Healthcare CEO. In an October 22nd journal entry, Mangione allegedly criticizes bombers, he writes, quote, do you bomb the H.Q.? No, bombs equal terrorism. Such actions appear the unjustified anger of someone who simply got sick or had bad luck and took their frustration out on the insurance industry while recklessly endangering countless employees, unquote.

So, you have said that prosecutors might have a hard time proving the murder was intended to be a terroristic act. Don't these writings help support the idea that this was a terroristic act?

[18:35:00]

STACEY SCHNEIDER, CRIMINAL DEFENSE TRIAL ATTORNEY: Well, prosecutors have been arguing that he targeted the insurance industry and this was terror to the insurance industry. And then these notes in a notebook, you know, this manifesto or this diary that came out more in the motion that was recently filed and came out more yesterday what was inside there, that this is just proof that his goal was to target that industry.

But another way of looking at it, and this is just a defense perspective of why the city of New York should not be charging him with terrorism and just charging him with the murder charge is because he very distinctly says, I just want to get to this CEO investor conference at the hotel where the victim, Brian Thompson, was, and I want to, you know, take care of my goals with this one person. His intention was to send a message to the public, but not necessarily to terrorize the insurance industry, which is what the prosecution is alleging in the papers that were just filed in response to the defense motion to dismiss.

TAPPER: In the filing though, prosecutors write, quote, if ever there were an open and shut case pointing to the defendant's guilt, this case is that case, unquote. Yesterday, we should note a legal defense fund in support of Mangione raised more than a million dollars, $1 million. Do you think prosecutors can convince a jury that this is the open and shut case they say it is?

SCHNEIDER: Very likely. I've never really seen a murder charge with this quantity of evidence. The number of video cameras on the streets of New York City in the days prior when he arrived and was staying at the hostel, they have the I.D. presented at the hostel, the false I.D. that matches him. They have street cameras from every corner when he ate a snack, when he rode his bicycle, when he went through Central Park.

And then when I say it was he, the video surveillance looks like Luigi Mangione, has the type of clothing and the backpack and the characteristics of Luigi Mangione, whose picture is on the video footage from the hostel he checked into when he arrived in New York. There are so many connections here. And now this notebook that was released that we're talking about has notes. The notebook was seized from him planning exactly what we see on camera happening to the victim in this case.

So, they're not exaggerating when they say they have an open and shut case. And the reason they're making that point right now is because they don't want the judge to grant the defendant's motion to dismiss the state charges and just keep the federal charges because they have what they say are airtight allegations of terrorism in addition to murder, whereas in the federal court, he's charged with murder and stalking alone.

So, the state wants to -- the state of New York, the city of New York wants to carve out its own case to prosecute him at the same time as the federal government is prosecuting him.

TAPPER: All right. Stacey Schneider, thanks so much. I appreciate your insights, as always.

Today we're checking in with the very first guest you ever met in our series on Business Leaders, talking to small business owners coast to coast about Trump's tariffs. You might remember Drew Greenblatt. He was optimistic about Trump's tariffs when we started doing the series in April. How have they affected his company since? We'll talk to him next.

(COMMERCIAL BREAK)

[18:40:00]

TAPPER: New today in our Money Lead, the manufacturer who makes Pampers and Tide and other household products is slashing 7,000 jobs. The company's Procter and Gamble and the company's leaders are citing consumer consumers' growing economic uncertainty is the reason, as President Trump's tariffs continue to reshape the global trade landscape.

The cuts will come over the next two years, part of his strategy to handle decreased expected demand for 2025. Procter and Gamble already announced plans to raise prices on some products because of tariffs back in April.

But let's now turn to today's Business Leader, our series, talking to small business owners coast to coast about Trump's tariffs. Many are feeling uncertain, some are excited about the developments.

My next guest is a two-timer. He first spoke to us back in April. He was optimistic about the tariffs. He's the CEO of Marlin Steel in Baltimore. And now that President Trump has raised the tariff on steel from 25 percent to 50 percent, we wanted to check back in with Drew Greenblatt, who joins us now.

Drew, what do you make of Trump's decision to increase the tariffs on steel imports?

DREW GREENBLATT, CEO, MARLIN STEEL: So, we only buy steel in America from steel mills that are in Michigan, Indiana, Tennessee, Pennsylvania. So, we're not buying any imported steel. However, the domestic mills have had much longer lead times gone from 2 weeks to 8 weeks, 12 weeks. We've also seen steel prices increase as more and more factories are buying domestic re-shoring and buying local.

Bottom line is, though, there's a lot of optimism going on. There's a tremendous amount of companies coming to Marlin and our sister plant, Matson (ph) in Indiana and Michigan. What they're doing is -- what they're receiving is a deluge of opportunities where companies are rethinking their supply chain and they're saying, you know what? Maybe we should build it here in America.

o, we're getting this fabulous -- a lot of at-bats (ph) and we've landed a couple. We're really excited about that. There's some big ones percolating. We're very enthusiastic about the future. We've been hiring people, we've been buying equipment. We're leaning into this excitement.

TAPPER: So, you were enthusiastic when we talked to you in April about the prospect of tariffs. It's been about two months since so- called liberation day, April 2nd. Have the tariffs lived up to your high expectations?

GREENBLATT: Yes, because we're getting more jobs. Our enthusiasm about the future has increased. When we talk to our other companies in the industry, they're feeling the surge of opportunities.

[18:45:03] They're feeling the surge of at-bats. They're seeing good things on the horizon. Plus there's a lot of other things going on that's positive. Regulations are going down. Inflation is going down.

We're also seeing a huge tax deduction going in place hopefully soon before July 4th. There's going to be opportunities for companies like myself to buy equipment and instantly expense it. Our factory workers are not going to have to pay taxes on overtime.

So, there's a lot of optimism, a lot of enthusiasm in American manufacturing. Companies overseas are going to be able to build factories inside, and they're going to be able to write it off instantly. So, it's many, many positives going our way.

JAKE TAPPER, CNN HOST: There are some warnings from other steel and aluminum, aluminum reliant industries about this blanket tariff increase. They're concerned the cost to make products like vehicles, like canned goods could go up. And they say that this could mean eliminating jobs.

What's your take on that?

GREENBLATT: Well, I think there's going to be some industries which will see some of their costs go up. But you got to remember the big picture is we have to have a thriving solid steel industry. It's a critical element to building ships, building airplanes, you know, making cars.

If we're completely hoping that other countries that may have adversarial relationships with cut us off, one day, we're going to be in big trouble. We need a thriving solid steel industry that can support the domestic market and also export. This is a wise policy to strengthen our economy so that our industries can be self-sufficient.

This should be true for steel. It should be true for silicon chips. You know, right now we buy 80 percent of our silicon chips from Taiwan. We need to make sure that we build critical things here in America, so we're self-sufficient. God forbid we get into an adversarial relationship with the partner that today may be our trading partner, but tomorrow may not be so friendly.

TAPPER: Speaking of getting into an adversarial relationship with a partner I don't know how much you've been following of the Donald Trump-Elon Musk breakup, but Musk today tweeted, among other things, that the tariffs are going to cause a recession. No concerns by you?

GREENBLATT: I focus on bookings, I focus on -- I have big fat bookings. That is the leading indicator for our enthusiasm. That's our order book.

In our order book is huge right now. And the inquiries were getting are going to make it even bigger. Thats what I focus on. I don't focus on Twitter. I don't focus on other things chattering in our ears. I focus on, what are my clients saying and making sure my employees are happy, making sure my employees are safe. I'm trying to grow this business. I'm reinvesting in new technology,

new equipment, hiring great people. I got to focus on what's important. I don't watch the Twittersphere. I focus on, you know, taking good care of my employees. And good things will come.

TAPPER: You sound wise. The business one more time is Marlin Steel. It's based in Baltimore, Maryland. And the guest again is Drew Greenblatt.

Drew, I'm glad things are still working out so well for you. Really happy to hear that about you, your company and your employees.

Coming up, two hostages will finally be laid to rest after their bodies were recovered by the Israeli military in Gaza. What we're learning about the operation to bring home Judi Weinstein-Haggai and Gadi Haggai. That's next.

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[18:52:19]

TAPPER: Also on our world lead, the bodies of two Israeli-Americans were recovered from southern Gaza during a military operation, according to a statement from the Israeli military. Judi Weinstein- Haggai and Gadi Haggai were killed near their home in kibbutz Nir Oz during the Hamas terrorist attacks on October 7th, 2023. Their bodies were taken by the terrorists into Gaza.

CNN's Jeremy Diamond has the latest.

Jeremy, what is the Israeli government saying?

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Jake, the Israeli military announced today that they recovered the bodies of two American-Israeli hostages inside the Gaza Strip. Judi Weinstein- Haggai, who was 70 years old, and Gadi Haggai, 72 years old, will now be laid to rest in Israel.

They had gone out for their morning walk on that fateful morning of October 7th, 2023, when Hamas launched its surprise attack on southern Israel. They were both killed on that day, and their bodies were taken hostage into Gaza by a group known as the Mujahideen Brigades. Thats the same group that also kidnaped Shiri Kfir and Ariel Bibas on October 7th.

Judi and Gadi's bodies were then held as bargaining chips inside of Gaza for more than 600 days. They are survived by four children and seven grandchildren, who said in a statement today that they are, quote, grateful for the closure granted by this Israeli military operation that recovered their bodies. This now means that there are 56 hostages still held in Gaza, 20 of whom are believed to be alive.

Among the 56 are two American citizens, 19-year-old Itai Chen, and 22- year-old Omer Neutra. They were both serving as Israeli soldiers along the Gaza border on October 7th. They were killed in that day's attacks and their bodies have been held as bargaining chips ever since. Now. Meanwhile, the Gaza Humanitarian Foundation, announcing that it

has resumed operations inside of Gaza following a roughly 36-hour pause. This came after a week of deadly Israeli gunfire that killed more than 60 Palestinians along the route leading to this Gaza Humanitarian Foundation site. That's according to the Palestinian Ministry of Health. Eyewitnesses on the ground and doctors at local hospitals.

And so, after closing that site down to make what they described as logistical improvements, they've now reopened two sites. Both sites, though, were closed within an hour of distributing the aid, which speaks, of course, to the enormous need for humanitarian aid that very much still exists in Gaza -- Jake.

TAPPER: All right. Jeremy Diamond, our thanks to you.

[18:55:01]

Thousands of gallons of diesel fuel spilling into the Baltimore harbor, turning the water red. What we're learning about the cause and the cleanup efforts. That's next.

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TAPPER: In our national lead, a major cleanup effort in Baltimore, Maryland, after a 2,000-gallon diesel spill stained the water a red hue. Crews are using oil absorbent materials and skimmers to remove the fuel from the water to the best effort they can.

According to authorities, the spill came from an overfilled diesel tank at a Johns Hopkins Hospital facility. Maryland Governor Wes Moore says drinking water has not been affected.

And our pop culture lead, Michelle Obama, the former first lady, announced she's releasing a new book this fall about her life. But instead of her politics, this time she's focusing on fashion. The former first lady's new book is entitled "The Look" and will explore her fashion choices throughout her time in the public eye. Michelle Obama said that through this book, she wants to reclaim the narrative around how her appearance has been dissected and scrutinized.

You can follow me on Facebook, Instagram, Threads, and on TikTok @jaketapper. You can follow the show on X @TheLeadCNN.

"ERIN BURNETT OUTFRONT" starts right now.

Take it away, Erin.