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U.S. Isolation At G-7 Summit After Tariff Announcement; New Scrutiny Surrounding Scott Pruitt; Trumps Marks 500th Day in Office By Tweeting Accomplishments; Bill Clinton Defends His Handling of Sex Scandal; Trump Cabinet Members go After China Amid Critical Talks. Aired 12:30-1p ET

Aired June 04, 2018 - 12:30   ET

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


[12:30:04] JOHN KING CNN CORRESPONDENT: We haven't seen the President of France, that call described as testy even terrible. The President is getting some blow back, the questions is what have in the impacts?

MICHAEL BENDER, WHITE HOUSE REPORTER THE WALL STREET JOURNAL: And the big complaint about these trade actions has been -- what the economic impact would be? And the third of the administration we haven't seen a real -- we haven't seen the economy fall off the cliff like some economists have warned.

That said, there are a lot of warning signs all around. You mentioned the G7 over the weekend, G7 members rarely rebuke each other, let alone the United States. You know, so that was a pretty extraordinary moment this past weekend. You know, Mnuchin had said that the trade war is on hold. Well, I don't think Peter Navarro agrees with that, I don't think Donald Trump agrees with that and our closest allies in the world clearly don't agree with that.

KING: And the President is going to be in another environment next week. The finance minister meeting at the G7 was the prelude to the actually G7 meeting which is coming up. Are these leaders letting off steam at the finance minister level on this private phone calls or will the President get it publicly? He's out there next week.

TOLUSE OLORUNNIPA, WHITE HOUSE, BLOOMBERG: He definitely will sort of be in the situation where as the G6 plus one this several these leaders have tried to flier the President. They've spend the last year trying a strategy of appeasement with the United States even though the President was doing things they thought were a little off or a little bit different.

KING: Like withdrawing from the TPP, the Paris trying ((INAUDIBLE), questioning NATO treaty commitments, threatening withdrew from NAFTA, withdrawing from the Iran deal, now slapping tariffs on allies. Sorry, just wanted to make your point.

OLORUNNIPA: Yes, yes exactly. And all of these are situations where the President said, OK, I'll break these old agreements that past administrations have done. But I'll come to the table and I'm going to do a deal, I'll make a new agreement. And we haven't seen that with TPP or the climate deal or the Iran deal. We see these various leaders willing to push back. KING: This is the 500th day of the Trump presidency. He reminded of us on Twitter this morning. He did say he even like any of this deals, he did say it was going to take the Obama era and some other trade -- where are the new ones? Where are the new ones?

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Well, that you need partners to do that. He wanted to rip up all these deals and do bilateral deals just the United States and singular countries as suppose to multilateral like NAFTA, for example or TPP.

But to go back to your question about this meeting that's going to take place, the G7. I remember when we were covering George W. Bush and the allies were so upset at him because he didn't want to meet with Yasser Arafat, he refuse.

I remember him saying, I'm going to the meeting and be the skunk at the garden party. That was nothing compared to how stinky a skunk this President will be at this G7 because it's not just sort of a diplomatic question, it's the economy. It's the economic engines of all of these countries.

And maybe there's no economic impact in the United States yet, but there could be. I mean when you have Canada sounding as strident and as tough as they are, which you don't usually hear from the Canadians, it means something.

KING: And you spoke to the Canadian Foreign Minister yesterday. Let's just listen to that right there Chrystia Freeland she says, you know, we're your neighbor. You should be nice.

(BEGIN VIDEO CLIP)

CHRYSTIA FREELAND, CANADIAN FOREIGN MINISTER: So, what you are saying to us and to all of your NATO allies is that we somehow represent a national security threat to the United States. And I would just say to all of Canada's American friends and there are so many, seriously? And so this is a really sad time for us. We are hurt and we are insulted.

(END VIDEO CLIP)

KING: The tone, if you translate it, normally it's like Mr. President, we think this is not necessary. Let's talk our way through this. That's gone. That's gone. We are now in the seriously? In the pushback phase.

MARY KATHARINE HAM, SENIOR WRITER, THE FEDERALIST: That was Canadian fire.

BASH: Exactly.

HAM: No. It's always worth noting that trade and protectionism is the thing that the President more than anything else. Donald Trump has been consistent on for the last 35 years probably. And so, it's not surprising that this happened but I think he has his fact (ph) throwing on a lot of this. I think its economic literacy and the thing is, this unpredictability and making products more expensive including notably motorcycles and bourbon in the United States of America is going to hurt people. And it hurts businesses trying to plan for the future. You may not see it right now, but why drop this bomb on a gangbusters economy?

KING: And why I'm going to add a new bomb in an environment where your allies are already mad at you. This is Richard Grenell, the new ambassador of the Germany. Trump administration ambassador at Germany.

"I absolutely want to empower other conservatives throughout Europe, other leader. I think there is a groundswell of conservative policies that are taking hold because of the failed policies of the left." He also praised Austria's far right chancellor, which the german media, the country he now serves in took us in a front to chancellor Merkel.

An ambassador's job is to represent his or her country overseas. It is not or at least has not been in the past a political organizing job where you go over and help like-minded people even if that's against the governments you're working with?

BASH: This is very unusual. Very, very unusual, disruptive but he's representing a disrupter. He's representing the country but he's appointed by the President. And that is something that the President I'm sure is applauding from that White House residence.

[12:35:09] KING: Let's keep an eye on that one, the next international conference, and I'll get test speak up, it'd be fun to watch.

Next for us here, Democrats raise new questions about some of the EPA administrator Scott Pruitt's purchases.

(COMMERCIAL BREAK)

KING: Topping our political radar today, just a week ahead of his major summit with President Trump the North Korean leader Kim Jong-un replacing three top military officials, U.S. officials says they believe the decision may have been motivated by concerns the three were in position to take advantage of outside investment coming into North Korea.

[12:40:02] Their successors all appear to be younger Kim loyalists. First lady Melania Trump expected to attend a White House event tonight for Gold Star families. It will be the first time she's done an event with the President since she underwent what her spokesman described as a benign kidney procedure three weeks ago. Despite tonight appearance Mrs. Trump will not travel to this weekends G7 summit in Canada or to the North Korean summit later this month next week in Singapore.

One of the EPA administrators Scott Pruitt's top staffers told house oversight committee members that she spent several workout as week researching rental properties for Pruitt. He'd also said, she was asked to inquire about purchasing for Pruitt a used mattress from the Trump International Hotel.

Democrats say it's a violation. They're asking to subpoena records that they think will show Pruitt misused his office by asking staff to run personal errands. And today the President marked his 500th day in office with tweet number 3,495. We have accomplished a lot the President tweeted many believe more than any president in his first 500 days.

He went on to out the GOP tax cut, lower crime his confirmed judicial appointments, immigration policy and, "the best economy and jobs ever."

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, COUNSELOR TO PRESIDENT TRUMP: So much great has happened and that's why we're calling this the 500 days of greatness. The President himself will talk to grass root supporters later today. We have fewer regulations more optimism and economy that's actually booming and frankly more respect on the world stage. The last President was given the Nobel peace prize. This president may actually earn it.

(END VIDEO CLIP)

KING: All right, here on day 500, Scott Pruitt, how? Just how does gravity not take hold here?

BENDER: It's because the President has not lost confidence in him. I had a source close to the President a month ago said don't waste asking him about whether or not when Pruitt was going to be and what was going on inside the Oval Office.

He told me, don't waste the Yankees (ph). He's not going anywhere the President will never get rid of this guy. This source was wrong in the sense that Scott Pruitt has made for a lot of good stories and lot of interesting ink in that month since then, but there is no sign from this President that Pruitt is anywhere -- anything other than secure in his job.

OLORUNNIPA: It makes you wonder what happen to the draining the swamp, I mean if you were to create a swamp creature out of thin air, this would be what you would create someone who is renting a $50 a day apartment from a lobbyist, spending all this taxpayer money on pens and first class flights and using sirens to zip through the town of Washington to get to a high priced restaurant.

It's very swampy and President Trump doesn't seem to mind that in part because he's doing a lot of what President Trump wants to do on the regulation front, but it does sort of make the whole drain the swamp era ring very hallow. And you have Michael Cohen telling access and just one other pinpoint in this whole idea that President Trump came into Washington to be a disrupter and to clean out the political class but he's done a lot of very political and a lot of actions that really point towards the type of swamp that he said he was going to drain.

KING: There's a lot of swamp. You're right about that. And proof there's a tweet for everything Mr. Administrator you don't need to use one, you can get new one. Donald Trump tweeting October 2011, "My Trump Home Mattress Collection by Serta is setting records. They are really phenomenal. You can order them serta.com". I don't know if that's still the case. This is a six-year old tweet but you never know.

[12:43:26] When we come back, a story and a look from a former President, which I'm all too familiar.

(COMMERCIAL BREAK)

KING: Two quick updates now and some developing news. First today's Supreme Court decision in the case involving the Colorado baker. Attorney General Jeff Sessions just issued the statement saying "We are pleased with the ruling".

The attorney general goes on to say in this case and others the Department of Justice will continue to vigorously defend the free speech and religious freedom, first amendment rights of all Americans. Another story to bring you up to speed on George H.W. Bush spokesperson just tweeting, the President George H.W. Bush was discharged from the hospital today after being treated for a blood pressure.

The President is deeply appreciated both from the terrific care and the man good wishes he has received. Former President is up in Maine. Former President Bill Clinton was on TV today trying to promote a new novel, but he turned defensive when his Oval Office history came up. Defending his decision to fight, not resign when the Monica Lewinsky affair became public.

And those who said he could not have survived if all that had played out in today's Me Too movement the former president says this.

(EBGIN VIDEO CLIP)

BILL CLINTON, FORMER UNITED STATES PRESIDENT: I think I did the right thing. I defended the constitution. This was litigated 20 years ago. Two-thirds of the American people sided with me. They were not insensitive of that.

I had a sexual harassment policy when I was governor in the '80s. I had two women chiefs of staff when I was governor. Women were over represented in the attorney general's office in the '70s. For their percentage in the bar. I've had nothing but women leaders in my office since I left.

(END VIDEON CLIP)

KING: Monica Lewinsky just moments ago tweeting this, grateful to the Myriad people who helped me evolve and gain perspective in the last 20 years. Lewinsky added a link to the Vanity Fair interview she did back in March that regenerated this conversation.

To Bill Clinton's point about his record as governor and then as president, in appointing women to powerful influential positions, he is absolutely right. However, however, it seems him making that argument leading with that argument seems a little off, no?

BASH: Yes. And that's -- that Monica Lewinsky tweet that you showed that she just sent is saying that without saying it. I have evolved over the last 20 years. Where the heck are you? And look, this is one of those things this far better than most about the fact that Bill Clinton was dealing with that scandal in a different era.

[12:50:04] And it has to be looked at if he's going to go out today through the lens of today. And he needs to be held accountable through the lens of today.

KING: That's the part that sparks him to process. You could see a couple of the thread marks glares at the report there. I remember them all too well, if he doesn't like the question he gives you the glare or says you don't know what you're talking about.

That's what he does and he's good at it. However, if he wants a public role now and he does, whether it's promoting a book or being on the campaign trail where we don't see a lot of invitations for Bill Clinton right now given to him.

If he wants that public role, he has to know that he's going to have to answer these questions, correct?

HAM: Right. And he should have a better answer although part of the problem is that, in the context of now and which his moment, his behavior with women over the years, there's not a great answer for it.

And in addition to Monica Lewinsky, others who have accused him of worse, nonconsensual encounters Like Juanita Broaddrick or saying, hey, why doesn't somebody ask him about those, which I think is a fair question as well in this day.

And by the way, he has never figured out how to cover that anger effectively. As soon as that switch turns, you can see it all over.

KING: But to that point, he was asked in the NBC interview what about an apology to Monica Lewinsky.

(BEGIN VIDEO CLIP)

CLINTON: Well, I felt terrible then. And I came to grips with it.

UNIDENTIFIED MALE: But you didn't apologize to her?

CLINTON: I have not talked to her.

UNIDENTIFIED MALE: Do you feel you owe her an apology?

CLINTON: No. I never talked to her. But I did say publicly on more than one occasion that I was sorry. That's very different. The apology was public.

UNIDENTIFIED MALE: And you things a think a private apology is owed?

CLINTON: I think this thing is 20 years ago. Come on. Let's talk about JFK, let's talk about, you know, LBJ. Stop already.

(END VIDEO CLIP)

KING: It was 20 years ago and that's a combination of Bill Clinton's raspy voice and his allergies there and why it makes it hard to understand sometime, it was 20 years ago. But again, if he wants to be out there today, this is the moment we live in.

BENDER: Yes. And 20 years ago that's what he was well-known for was his awareness of the political moment and his ability to connect with that political moment. What I thought was most surprising about that answer was that it showed a lack of awareness of the current political moment. And until he can rectify that, I don't think we're going to be seeing a lot more of him out on the campaign trail or in public opinion appearances with some of the democrats trying to make this an issue.

KING: He is scheduled to be part of some ceremonies marking the 50 year anniversary, the assassination MLK this week of the interest to keep a eye on that, in the months ahead and the midterm Europe.

Next for after two days of trade talks and nothing to show except, a new warning from Beijing.

(COMMERCIAL BREAK)

[12:56:43] KING: The President's friendship with China's leader facing big tests on several fronts and at a critical time, for starters, new trade talks, greater (ph) impact. The Commerce Secretary Wilbur Ross spent two days in Beijing but has little to show for it.

In fact China is warning will ditch to previous commitment to buy more American goods, Mr. Trump administration doesn't back down from its plan to impose tariffs on $50 billion worth of Chinese imports.

The President's tweets in recent days have ranged from being "Very surprised about China's new threats saying their behavior is not acceptable and promising we can only win a massive trade deficits no longer."

Trade is just one of the sore points here. Add in some tough new words from the Pentagon about China's ambitions in the South China Sea and a state department call for more honesty from Beijing about the massacre at Tiananmen Square.

All coming just days before the North Korean summit where if there's any progress or if there's setbacks the President is going to ask China to have his back in all this. I want to start with this, listen to Secretary James Mattis here again understanding the moment, Secretary Mattis refusing to bury his concerns about China's military actions in the South China Sea.

(BEGIN VIDEO CLIP)

JAMES MATTIS, DEFENSE SECRETARY: China's militarization of artificial features in the South China Sea includes the deployment of any ship missiles, surface to air missiles, electronic jammers and more recently the landing of bomber aircraft at Woody Islands.

Despite China's claims to the contrary, the placement of these weapon systems is tied directly to military use for the purposes of intimidation and coercion.

(END VIDEO CLIP)

KING: That's confrontational there, at least calling them out. Mike Pompeo, this is the 29th anniversary of Tiananmen Square.

The Secretary of State saying we joined the others and the international community and urging the Chinese government to make a full public accounting of those killed, detained or missing. To release those who have been jailed for striving to keep the memory of Tiananmen Square alive, and to end the continue harassment of demonstration participant and their families.

What happen to chocolate cake?

OLORUNNIPA: Pompeo is saying we join others in the international community that's something that this administration has had trouble doing. They're getting ready to go to the G7. This would be a perfect time to get all the G7 countries together on a China policy, but instead they're fighting over trade and tariffs and China is taking advantage of that, this unity to take action in the South China Sea and to move forward its own agenda.

KING: You have two cabinet secretaries who decided, I know the President wants to have this friendship, but I need to tell the truth and speak my mind.

BASH: Exactly, and this is as complicated a relationship as it gets, it really is. The fact that you do have the Defense Secretary over there saying this is dangerous the way that they are building in the South China Sea militarily.

We can hold our tongue tells you a lot about the fact that China might be necessary in places like North Korea, necessary economically, but they do some bad stuff around the world and in their own country.

BENDER: And yes, I'm going to go back what happened to the chocolate cake. I think what happened with the chocolate cake is that, it's getting eaten in North Korea. Our sources around the White House are telling us that everything right now is revolving around this North Korean summit.

You can trace increased rhetoric from the White House against China back to where the President made comments that he was upset, that President Xi was meeting with Kim Jong-un. This summit and the President's desire to have it is affecting his decisions on trade, affecting his decisions on approach to China, too.

[13:00:07] KING: Well, calling it as it is not just as you see it the calling as it is important, congrats to the secretaries there. Wolf Blitzer starts right now.