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Top Officials Says He's No Longer Referring Migrant Families For Prosecution; Trump Accuses Harley-Davidson Of Waving "White Flag"; WSJ: "Good Luck To Republicans" Running On Tariffs; Democratic Leadership Rebukes Rep. Maxine Waters. Aired 12:30-1p ET

Aired June 26, 2018 - 12:30   ET

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

[12:30:00] JOHN KING, INSIDE POLITICS HOST: -- that's tomorrow for a vote on what they call a compromise immigration bill that they expect to fail and fail big time even though if they're going to bring it up for vote. House Speaker Paul Ryan telling reporters today he wants to do well on the vote. Not quite sure what that means.

Most Republicans hopes that pivot beyond what they essentially considers a show vote to a smaller version legislation simply targeting those family separations, making it unlawful to separate families that come across the border. Fix that, the logic goes and the immigration quagmire perhaps will quiet down by November.

We're waiting for the President. Let's see if he talks about the other issues or cases focus on the Supreme Court on Capitol Hill, Republicans, they promised the moderates that they get a vote so they can at least go home and run a campaign ad saying, I voted to protect the dreamers. Even though the bill is most unlikely to pass the House, correct me if I'm wrong, and the Senate won't consider probably even if it did pass the House. So is this all 2018 politics? The moderates get to go home and say, I voted for the dreamers. If you're from a farm state you get to say I voted for a bill that expands against worker program. If you're a conservative you say I voted to strengthen E-Verify, is that all this is?

RACHAEL BADE, CONGRESSIONAL REPORTER, POLITICO: Yes, it certainly looking like it. It's going to go down in pretty spectacular fashion, we predict, tomorrow. I think it's interesting. The President right now is lobbying senators about the wall. He wants to build his wall.

Well, guess what? He doesn't want it enough to actually stick his neck out and say, listen, guys. I'm going to back an immigration bill that some of you guys call amnesty because it does build my wall. Right now, House Republicans tomorrow are going to consider a bill that includes $25 billion in not just authorized funds but actually appropriated money. It's just all the same he said he wants an immigration compromise just three months ago, cracks down on illegal but also illegal immigration.

But the President has been unwilling. He's been slippery, flip- flopping left and right and not willing to say, I want you to pass this bill. And that is exactly why this bill is going to fail tomorrow, because Republicans are not going to vote for something unless he gives them cover, and he is too afraid of the far right and the word amnesty to back something that he actually proposed.

KING: It's a critical point because the compromised bill doesn't say we will eventually give you $25 billion, it gives it to him.

BADE: Yes.

KING: It's right there. It's appropriated money.

BADE: Right.

KING: Which is money in the bank. It's there for the President, but he won't do it. Instead, the President who he doesn't like to focus on his failures or his retreats or his flip-flops, he had to concede ground and reverse his own family separation policy. A number of Republicans have said the way to make this cleaner, to move these cases along faster, is to hire more immigration judges. So when families or individuals are apprehended coming across the border illegally, you build these cases more quickly.

Here's the President on the road yesterday, again, a major administration retreat, but his prescription to that is talk tough.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We have thousands of judges already. So if a person comes into our country, steps one foot, they take their name, they bring them to court, they then release them, they go into the country, you never see them again. It's the craziest thing I've ever seen. So I said today, I don't want judges. I want ICE and border patrol agents.

(END VIDEO CLIP)

KING: To Rachael's point, there is a legislative compromise that includes a lot of things that would drive the Trump base crazy. They do consider any protection for the dreamers to be amnesty. It might be a small piece of America but it's a significant piece to the President. Instead he thinks this is a successful midterm message.

JACKIE KUCINICH, WASHINGTON BUREAU CHIEF, THE DAILY BEAST: Which is no due process.

ABBY PHILLIP, CNN WHITE HOUSE CORRESPONDENT: Yes, he wants to run on being tough on immigration. He wants to run on fighting for his wall. Not necessarily getting his wall, but fighting for it, because the compromise I think is too costly to him politically. And this is a President who has never really -- I think he believes that the judge thing is a politically correct thing to say and do, and he simply doesn't want to go there.

It is better for him to go to his rallies and say, we just want to get them out. That's what he's been saying since the campaign.

KUCINICH: Kim, can we just say, though, there aren't thousands and thousands of immigration judges, there is something like 400, right. So that is a key fact check there and they are completely under water and backlogged because of the President's policy.

KING: Republicans are proposing adding a couple100 more.

KUCINICH: Yes, in order to help process this because this is still the United States of America and there is due process. And the President, probably with today as the exception, has been kind of against the judicial branch. So this is just another example of that. They slow him down for his whims.

OLIVIER KNOX, CHIEF WASHINGTON CORRESPONDENT, SIRIUSXM: But also getting back to a point that Rachael made earlier, they're not just going after undocumented. They're going after very specific populations and they're trying to crack down on asylum. This is a point about the judges.

KUCINICH: Yes.

KNOX: That they're kicking out people who came here, who were granted protected status. They're trying to cut back on people who get to claim asylum. Jeff Sessions reduced the number of categories that qualify for claiming asylum. What they don't want is people getting here fleeing unimaginable violence in their home country. Going before a judge and the judge is saying, you know what, you have a credible fear of being murdered in your home country, so we're going to grant you asylum here.

KUCINICH: And can I --

KNOX: But --

KUCINICH: I'm sorry.

KING: Go ahead.

[12:35:00] KUCINICH: No, I'm going to say, so one of the things they eliminated and we've talked about this before with the family case management system, and this was a 99 percent effective program that, you know, people who came into the country seeking asylum, they would make sure that they got to their judicial hearings. They got rid of it, and the ICE told the Daily Beast this the other day because too many people were getting accepted and too many people were actually being granted asylum.

KING: The policy go of the administration. He talks about gangs, he talks about illegal immigration, but the policy go in the administration to reduce the number of people who are getting illegally whether through asylum or for other way that's a clear policy goal. Again, we're waiting here for the President.

Up next for us, though, details on another major ruling we just got from the Supreme Court. This one is combining free speech with the question of abortion rights. And again, we're waiting here for the President of the United States. Stay with us.

(COMMERCIAL BREAK) KING: Topping our political radar today, another big 5-4 ruling from the Supreme Court just a short time ago. This one strikes down a California law that required family planning centers that oppose abortion rights from telling clients they could obtain abortions at other facilities.

[12:40:12] The majority opinion saying that creates an overly burdensome disclosure requirement. The ruling is a victory for the Christian conservative group that operates the clinics in question. The Justice Department says it is following the law when it comes to Republican request related for the Russian investigation.

That response for back and forth, the latest letter for the House Intelligence Committee Chairman Devin Nunes who gave the Deputy Attorney General a deadline yesterday for producing more documents and information on confidential FBI informants. The DOJ says it's already complied. The correspondents in paying by CNN show several issues still outstanding.

Voters across seven states heading to the polls today, a big primary day. Among key races to watch, the Senate primary out in Utah, where Mitt Romney is heavily favored to win the Republican nomination and then the upcoming general election. His picks to constituents? I won't go to Washington and get that (INAUDIBLE).

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), UTAH SENATE CANDIDATE: Utah knows better how to run Utah than Washington does. Get Washington out of our hair. Now, I'm asked, by the way, from time to time, Mitt, you ran for president. You lost. Why are you running again? And the reality is just because you get turned -- you know, bypassed, turned down for general doesn't mean you stop fighting. And I'm going to keep fighting for the things I believe in.

(END VIDEO CLIP)

KING: Up next for us, the President picks a fight with Harley- Davidson. We also remind you he's in a meeting with reporters right now talking about the travel ban. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[12:45:50] TRUMP: Wisconsin, I love Wisconsin. We're proud of you. It's really amazing what you've done. Made in America. Harley- Davidson. Made in America. You know the bikers for Trump were like -- unbelievable. They were with me all the way, right? And they love these bikes.

(END VIDEO CLIP)

KING: Flashback there to the good old days, meaning February of last year, when President Trump seemed ready to hit the open road with top executives with Harley-Davidson. Wow, what a difference a big tariff, a big trade war can make. The President now attacking the iconic motorcycle brand for threatening to move some production overseas. The company says it has to do that to avoid retaliatory penalties in one of its biggest market.

The President, you see him here, unleashing a flurry of tweets singling out Harley. Including one saying the company plan to export production all along and they're simply using these new tariffs as an excuse. It also says the company should have had the courage to ride this out, but is instead raising the white flag of surrender, quitting. The President says they face a backlash and new taxes as a result.

Whether you agree or disagree with the President's trade views he is taking a risk here. Harleys are made in Wisconsin and Pennsylvania, two states the President carried. A large of these other tariffs, the retaliatory tariffs are hitting farm states where the President was successful. But he's not backing down here. The part that unnerves a lot of people is how the President of the United States personally singling out an American company and hitting.

BADE: Everybody would agree, you know, moving American jobs overseas is not a good thing. The question is who do you blame, the President or Harley-Davidson. Obviously, the President is saying Harley- Davidson is just using this as an excuse, that they were already going to be moving jobs overseas and basically saying they're going to be hit and that people are angry in the United States and their workers are angry and they're going to pay a price.

But, you know, I was just listening to Speaker Ryan who did his press conference. He's from Wisconsin where Harley-Davidson is headquartered. He was asked about this and he didn't blame Harley, he blamed the tariffs. He said the tariffs are attacks. And actually companies have to look out for their bottom line, if there is a business. If they're going to save money and their customers are going to save money by them moving jobs overseas, that's what they're going to do and he put the blame squarely on the President.

KUCINICH: And yet he's not upset enough to name the President. Yes, well, to name the President and to take back the authority to -- from Trump on tariffs.

KING: But not (INAUDIBLE).

KUCINICH: Exactly. He's not that upset yet. Perhaps maybe because he's leaving, I don't know. But the other thing, I would keep an eye on Harley because I don't think they're going to be alone. The President was at Columbia, South Carolina last night. Right down the road, 95 miles or so in Spartanburg, there is, I believe, a BMW plant that manufacturers -- that employs quite a few people in that area.

He was talking about levying taxes on foreign cars. That's going to be problematic. And as you said, companies are going to be looking out for their bottom line and don't have the same filthy to this President.

KING: This is one of the issues the President had a long meeting with reporters, 20-plus minutes, in equal of more than 30 minutes. He talked about inheriting a bad trade deal. So he's talking about this again. He also talked about North Korea, he talked about health care, he talked obviously about the travel ban, he talked about that he wants more wall funding.

But on this trade issue, the Wall Street Journal editorial page, again, this is the President of the United States, a Republican but the President is the abandoning traditional Republican economic policy by imposing these tariffs on the European Union aluminum and steel on China as well on other issues. This is the Wall Street Journal editorial. "Mr. Trump has said the big league support of Harley employees helped him win the swing states in 2016. Mr. Trump is also going to have some explaining to do to Wisconsin cranberry farmers, Florida orange juice producers and Iowa soy and corn growers. Good luck to Republicans running on the Trump tariffs in November."

KNOX: Couple of thoughts. One is, I wouldn't completely discount that Harley might have already planning to move some operations overseas. They have overseas operations and they've been struggling with market share. And we've seen other companies repackage previous announcements and then credit to -- mostly credit them to the President.

But here you have, as you say, and I kind of grand saying, not all is your policy not working, it's having the opposite effect and its costing jobs. That said, the story that I really want to look at, everyone to look at is not so much the tariffs, it's all the negotiating that's happening without the United States at the table. I give you an example.

UNIDENTIFIED FEMALE: Right.

[12:50:03] KNOX: The E.U. negotiates from Mexico, for example. Bank shop (ph) ends up really hurting American cheese producers. By the way, another Wisconsin situations. So we're not at the table.

All of our partners are reaching all these other deals, right? TPPs and repackage without the United States. There's a trans-atlantic trade view in Canada. American producers are becoming less competitive vis-a-vis their European rivals and their Asian rivals and other rivals. The tariff (ph) is a huge story but the fact that we are on the sidelines while all these other arrangements are being reached. It's enormously significant. And clawing our way back into these markets is going to be enormously significant.

KING: And clawing their way back in and the question is, will the President -- the patience in the President's own party is diminishing, but will there be an actually legislative effort or just words and whining? Forgive me, but just words and whining where they actually try to challenge their president. This is Pat Toomey, again, Pennsylvania, free market, Republican. "We've crossed a Rubicon. It's going to do and is already doing real damage. The President describes a deficit with another country as theft. I believe the President couldn't be more mistaken about that. You want to shrink a trade deficit, there's an easy way to do it. Have a recession." PHILLIP: Yes. I think the President, as one of the frustrations is that he doesn't seem to understand the fundamentals of trade. That's what makes this so bad. But I also I'm not sure his own voters are going to hold him accountable for this. One of the reasons he is doing it in the first place is because he's banked that toughness as a principle is more important to his voters than anything else. And we'll see about that, but that's the President's bet right now, and it's a huge, huge bet because he could lose big.

KING: It is a huge test. Tough talk hasn't gotten his wall yet. We'll see if it does. Tough talk hasn't gotten him any new trade deal yet. We'll see if it ever does. But the tough talk, you're right, place one of the Trump base. There's no results yet from it, is the interesting part.

When we come back, a debate about civility in America is now turned into a debate within the Republican Party.

(COMMERCIAL BREAK)

[12:56:00] KING: Any minute now, an extended conversation between reporters and the President of the United States. His Supreme Court win on the travel ban. One of the issues, about North Korea, trade, health care, and many other issues with the President waiting for that table. We'll bring it to you as soon as we get it.

In the meantime, the concept of civility in politics pitting Democrat against Democrat today. Congresswoman Maxine Waters facing backlash over her comments over the weekend when she encourage people to publicly harass the President's cabinet members. Speaker Paul Ryan among the Republicans calling on Waters to apologize, other Republicans says she should resign. But the toughest rebuke, undoubtedly, is coming from her own party's leadership.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER (D), MINORITY LEADER: I strongly disagree with those who advocate harassing folks if they don't agree with you. If you disagree with something or someone, stand up, make your voice heard. No one should call for the harassment of political opponents. That's not right, that's not American.

(END VIDEO CLIP)

KING: Now, Congressman Waters pushing back and explaining herself saying she never called for harm to be done to anyone. That's true, she just said protest wherever they are. The Breitbart, however, trying to turn this to conservative advantage. With headlines like this, "Maxine Waters' remarks prompt Trump aides to get guns, carry permits amid threat of violence."

Maxine Waters did not encourage violence. She did say wherever they are, find them and protest. Her own Democratic leadership says taking too far. What are they worried about?

BADE: Yes, I think very notable to speak. Nancy Pelosi -- almost called her Speaker Pelosi -- Nancy Pelosi rebuked her on this. Not only are they from the same party, they're both from California, they're both women, I mean, these are allies obviously. So Pelosi condemning these comments is noteworthy.

Clearly, Pelosi and other Democrats are worried about if Democrats take this sort of approach that they're going to alienate people who are independents who do not want to see this sort of toxic rhetoric. They want somebody who is trying to get something done, not somebody who is being an obstructionist and just wants to fight all the time. And so they're thinking about the election, and yes, they need to obviously drum up support from their base, but they're also concerned about alienating people and that's why they pushed back.

KING: And that's why Republicans like this fight among the Democrats. A lot of Republicans are saying we kind of baited them into this and they took the bait, if you will.

I want you to listen here. Symone Sanders, a veteran Democratic strategist, many of you remember her from the Bernie Sanders campaign. Essentially saying there's a danger here when you have the white leadership of the Democratic Party telling an African-American congressman to be quiet.

(BEGIN VIDEOTAPE)

SYMONE SANDERS, CNN POLITICAL COMMENTATOR: The folks calling for civility might need to check their privilege. This conversation about civility is completely one-sided and skewed. Again, I want to eat my Shake Shack and pace, but I also believe that movements in people that are speaking up for things, whether we are talking about the civil rights movement or whatever else. Those movements should be non- violent but they should not be non-confrontational. If we were waiting for non-confrontational and civility, we still might be sitting at segregated lunch counters.

(END VIDEOTAPE)

KING: Is there a risk? Chuck Schumer and Nancy Pelosi worried about independence, worried about more conservative white voters maybe in Middle America. Is there a risk that in trying not to get Maxine Waters not to stoke them, that they send a message to African- Americans? Just like, hey wait a minute, because they do need their base as you said.

PHILLIP: And not only that but also there's a risk that Democrats miss the anger and the fire on their side. That there are people just like there are Trump supporters who were so angry with their own party, so angry with the establishment but they didn't mind the President saying, oh, you know, if you hurt him, I'll help you out, get you a lawyer at his rallies. They didn't mind that with Trump, and Democrats run the risk of ignoring that segment of their own base, so angry and worked up about Trump that they want to protest. And they want to be president and they want to be heard.

KNOX: One of the gaps is generational too, right? Some of the young party activists are more incline to be in your face. But you see the same thing play out, talk of impeachment which Nancy Pelosi might talk to her couple of weeks ago really (INAUDIBLE) absolutely not.

KING: And the base has energy for. Thanks for joining us in INSIDE POLITICS. The President I'm telling you, we'll have it for you any second to lead that coverage.

Wolf takes over. He starts right now. Have a great day.

WOLF BLITZER, CNN ANCHOR: Hello, I'm Wolf Blitzer.