Transcripts For CNNW CNN Newsroom With Poppy Harlow And Jim

Transcripts For CNNW CNN Newsroom With Poppy Harlow And Jim Sciutto 20190823

As much as 140 points lower as the opening bell rings in an hour. The chinese said they have to impose these Counter Measures because of the trump trade war. And what theyre going to do is beginning september 1st and december 15th theyre going to impose a 5 tariff. If you remember those dates they pretty much mirror the dates President Trump has on the tariffs that are imposed on chinese imports on those 300 billion of chinese goods and that 10 tariff. So this is clearly yet another step, another escalation in this tit for tat tariff war. And whats interesting is the timing of this. This is happening on a day that kind of stole the show. Meaning whats happening in jackson, iowa, weve got a meeting of central bankers of the fed at this big conference where wall street is keeping its eyes on because it wants to get an idea about whether or not j. Powell, the head of the fed is going to go ahead and cuts rates again at the next meeting in september. And this comes on the backdrop, jim, of the economy showing contraction. The Manufacturing Sector contracted for the first time in decades. Those numbers indicative. Joining me now from the white house cnns sarah westwood. Any reaction from the white house to these new tariffs by china . Reporter this is another wrinkle in the president s trade strategy. Its coming as hes trying to assure the public that his trade approach is working as there are fears of an economic downturn. Now, weve asked the white house. We havent yet gotten a response to this specific escalation in the china trade war. But it comes after a period this summer of relative calm between china and the u. S. After the president sat down with chinese president xi jinping there was something of a ceasefire, he had delayed a new round of tariffs, but it changed earlier this month. We were not seeing a lot of change and the president threatened to reimpose some of the delays hed threatened with president xi. Those tariffs could affect the Christmas Shopping season, but still we are seeing these retaliatory tariffs from china just as President Trump and his advisers are working to assure the public that the tariffs wont affect economic growth. There is anxiety within the white house, jim, that an economic downturn could affect the president s reelection prospects next year. Sarah westwood at the white house, thanks very much. Joining me now is peter navarro, directly involved in the u. S. China trade talks. No anxiety in the white house about the economy. I do want to get to that, but first i want to get your reaction to 75 billion in tariffs. Will the u. S. Retaliate to these tariffs . So this was a move thats well signaled i think whats important here looked at the chessboard is you have a president in 2 1 2 years whos united this country and capitol hill against a china which is stealing our intellectual property, forcing technology transfer, dumping fentanyl well, im aware of that and ive done a lot of reporting on that. I do want to get your reaction to this, though, because this is significant move by china. My reaction to this is when china reacts like this what they simply do is strengthen the resolve of this president and they signal once again to the American Public that china wants to buckle our knees so they can keep having their way with us. So this was a move that was wellsignaled. Its breaking news i guess, but it was well anticipated. And i can assure you this. If in jackson today jay powell announces rate cuts or he simply says the fed has americas back well see the dow go up 300, 400 points. This is whats important here i know you and the administration wants to focus on the fed, but thats not where the Business World is. Wall street journal, the trade war leaves a bigger mark than the fed as my colleague allison cossack mentioned, the purchasing index fell below 50, and thats a 13month low. First of all the wall street journal, its when the main street journal starts criticizing this administration, thats when i worry. Weve created over 500 manufacturing jobs and wall street journal has been on record manufacturing would never come back to america. But theyre talking to Business Leaders in terms of the pmi, this manufacturing index, we saw the q2 numbers very clearly instead of having 3 growth we were down 2. 1 . If you unpack those numbers the biggest problem, jim, was the fed with the high Interest Rates driving up the currency and taking away our exports. Thats your view. Thats not the view of they cant make theyre delaying purchases because of uncertainty about chinese markets. Lets just agree on this. If we lose two thirds of a point of growth in our gdp equation in q2, would we agree a higher currency because of the feds Interest Rate policy might have had mg to do with that . Im telling you flat out that heres the problem and this is why jackson Business Leaders are saying they cant make investments because they dont know if they have the markets in china to buy this stuff. They cant make investments because the fed raised Interest Rates too far, too fast that policy fed policy is if you raise Interest Rates, you cut down investment and you cut down exports. Whats important today look, this is big day, tomorrow is a big day. Its a big day today because were going to get better signals from the Federal Reserve as to whether theyre going to get in line with over 30 Central Banks around the world that have been cutting rates. Think about that, jim, over 30 Central Banks. Are they going to keep raising rates or keep them up there, and the other thing this weekend which is really important, heres whats bullish for me, the European Central bank has announced theyre going to be cutting rates. Germany is in recession already and britain had quarter recession already. Theres talk now of germany abandoning its socalled black zero policy, which is meaning that theyre going to engage in fiscal stimulus. That could be the biggest thing to help europe go up. And by the way brexit is going to be resolved by october 30th with great britain. Were going to get a trade deal with them. Well see. The markets have more uncertainty about that. Lets talk about the u. S. Economy. You say the white house is not concerned. I said we dont run around the west wing with anxiety. We look at the chessboard and we basically a strong trump economy growing at 2 because of tax cuts, deregulation, cheap energy and trade. Are you seeing indications of that growth slowing . Well, we went from 3 to 2 , and our read of that is its a pure Federal Reserve effect on higher Interest Rates thats your read but thats not what Business Leaders are saying. Ive talked to farmers, too. Farmers are lost markets in china. All i can do is come here and have this conversation and have your viewers think about whats going on here. If the Federal Reserve raises rates 100 basis points and our currency goes up by 10 , we have to agree that our exports are going to go down. And if they do, we lose our growth. Were seeing that in the data. So the biggest news today is going to be what jay powell says. If he says hes got americas back and theyre going to cut rates, that dow is going to the president recently delayed additional tariffs on china concerned about the effect on the Christmas Shopping season. Now that china has imposed these 75 billion will that make the president reconsider that delay . Let me simply explain why the delay happened . We have executives come into places like best buy, they said they bought all their christmas stuff already in dollar contracts, which meant they didnt have any Bargaining Power to shift the burden back. Thats unlike what weve seen before because theyre going to shift the burden to consumers. Yeah, they couldnt shift it to china so we might have seen a little higher prices in other words, granting the consumers would pay the cost of the tariffs. But think about this. After 90 days theyre not going to be doing dollar contracts anymore. Theyre going to be able to shift it back. And look, if we can agree on anything, we have seen zero inflation from the china tariffs. China has been slashing their prices so far. But the president delayed tariffs because of concern about prices rising during the christmas season. The president made a wise decision listening to Business Leaders. They said, hey, look, give us 90 days, were locked into these dollar contracts and after that were moving our supply chain back home here or over to vietnam or thailand. And thats how china is feeling the pain on this. So the president will not reconsider imposing those tariffs . Well have conversations about this as we have been doing, but what i can tell you this is this news today is not breaking news. Its well signaled. Breaking news is going to be jay powell telling us the fed is going to engage in more rate cutting because maybe china raised irtariffs and because maybe the ecp is lowering their rates. But we can grow at 3 instead of 2 . Is the u. S. Economy slowing today . Well, we went from 3 in q1 to 2 in q2. So it is. But the reason why it slowed based on my read of the data is its pure Federal Reserve raising rates too fast. The fed cannot be raising rates when every central bank in the rest of the world is lowering their rates. That only leads to a widespread between Interest Rates between us and them and this thing called a carry trade where you borrow euros and buy dollars and a small handful of rich people make money and hurt manufacturers. Will u. S. And chinese trade negotiators be back at the table next month . Everything is on schedule. I think this is why its important for people to not get too excited about what was a well signaled event. Weve been having these negotiations and tariffs have been put in place. The economy has been strong. Consumers have seen no impact so far, and were committed to making sure they bear the pain, not us. Peter gnnavarro, thanks very much for taking the time. As the president heads to the g7 summit, the russian president Vladimir Putin commands his military to respond to the missile test. Plus the billionaire businessman conservative gop donor david koch, hes died. And is this the summer of Elizabeth Warren . New polls show her in a battle for the second place for democrats. Could she be the candidate to take on and defeat President Trump . Y on a legacy . Its show of strength. Or its sign of intelligence . In crossing harsh terrain. Or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month with credit toward your first months payment at the mercedesbenz summer event. Mercedesbenz. The best or nothing. Na blend of quality probiotics. And fermented whole food botanicals, expertly curated to naturally support your gut health every day. Go with align whole food blend. From the pros in digestive health. He borrowed billions donald trump failed as a businessman. And left a trail of bankruptcy and broken promises. He hasnt changed. I started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. Im tom steyer and i approve this message. Im running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is a fraud and a failure. Hmm. Exactly. And doug. Liberty mutual customizes your car insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Oh. Well, we just spend all day telling everyone how we customize car insurance, because no two people are alike, so. Limu gets a little confused when he sees another bird that looks exactly like him. [ loud crash ] yeah. Hell figure it out. Only pay for what you need. Liberty, liberty, liberty, liberty boom goes the dynamite, club yoko plays ] feels like im taking flight. [sfx poof] [sfx squeaking eraser sound effect. ] i am who i wanna be who i wanna be who i wanna be. Im a strong individual feeling that power im so original, ya sing it louder. I am, oooh oooh oooh oooh Ehhh Ehhh Ehhh ehhh i am, oooh oooh oooh oooh i am take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. Welcome back. Russian president Vladimir Putin is ordering his military to respond to the recent u. S. Cruise missile test. He blamed a weapons buildup on the u. S. Withdrawing from the antimissile treaty. Of course russia says the u. S. First broke that treaty. Until 2014 it was the g8 when other members kicked russia out, this for the invasion and annexation of crimea in a sobren european country, ukraine. Fredlic pleitgen is live in moskow. How serious do we expect this russian response to be to the u. S. Test . Well, i think its going to be quite serious. And i think some of the things that folks are saying not just here in moskow but internationally is that the u. S. Seems to be ever closer, jim, to being on the cusp of a new nuclear arms race. You can certainly see the kremlin was extremely angry at that missile test, that of course was being a tomahawk news missile. Vladimir putin went on a televised address here on russian state tv and he essentially ripped into the u. S. And said the fact this took place only 16 days after the u. S. Officially left the inf treaty, the prerun intermediate range Nuclear Forces showed this was something the u. S. Had been planning for a long time and that the u. S. Was essentially already preparing to get out of the treaty and blame all of it on russia. Then came that really key line we heard from Vladimir Putin where he said he was ordering all the relevant ministries, that of course first and foremost Russias Defense Ministry but also the Foreign Ministry and other ministry as well to take what he called comprehensive and also symmetrical action in response to this. He didnt say exactly what that was, whether or not there were going to be additional russian deployments. But as you said the u. S. Has been saying for a long time it believes russia is the one thats been violating this treaty which the u. S. Says violates that treaty. So certainly some pretty dire signs here coming out of moskow today. Were going to wait and see over the next couple of days and weeks what exactly that russian response is going to be. Certainly i can tell you having witnessed the way this unfolded today in moskow, the kremlin definitely extremely angry. And Vladimir Putin making a point to go on national tv and announce this, jim. Fred pleitgen enmoskin mosko thanks very much. The president opted the g7 tonight and even though joint communique. Thats because the last time they had a g7 communique President Trump tweeted he was pulling out of that which he had just signed with the canadian prime minister. Look, this is set to be a bit of a concentration on a number of different levels. Officials have told us they plan to lecture europeans on the success of the economy, the success of deregulation, cutting taxes, and its going to be a lecture to the eu that they could stop their stagnation if only they would be like the united states. Thats going to go completely opposite to the message of the eu and of macron who is pushing this proenvironment the u. S. Needs to reinn in its trade war with china because its pulling everyone else down. But macron has done various things like the environment communique or discussions to be on monday when they bring other members not just g7 members into the conversation because theyre expecting the u. S. Will not go along. This is the brazilian rain forest is literally burning. I just had peter navarro, white house trade advisor on the air here, and he said yes the economy is slowing, he of course blames the fed but it is. And today we have china imposing 75 billion on new tariffs on u. S. Goods. How does it make the argument be more like us when the trade war clearly is impacting not just the Global Economy but the u. S. Economy . Well, in a rational sense its difficult to say how they do make that argument, but this is the sort of play book weve seen time and time again from this administration. I mean, this president last night tweeted probably upwards i think ten times about how strong this economy is. The response out of this white house when they feel the facts are not on their side is to double down on their own tearatives. So i think its, you know, entirely expected theyd go to the g7 summit with this narrative in mind. And they dont want to go through and talk about climate change. Their whole idea has been to take the g7 back to its roots, which was to collaborate on economic discussions. They have wanted to pull it back to that. Without that, i mean this president is not ready to talk about climate change. He has no desire to whatsoever. No, not at all. In fact, he doesnt even believe apparently its happening with u. S. With human participation. On the g7 and russia, the president offering up this return of russia to the g7. You see macron who seemed to have been on the same page with trump in terms of at least inviting them to participate, but his position was theyve got to make progress on ukraine. Wheres this going to end up . I think were going to see another agreement to disagree behind closed doors that might be exposed through tweet, et cetera. Look, the other thing were seeing right now is the split in u. S. Policy on russia. You have missile defense, a missile test thats very provocative and intended to be provocative. Intended to send a message to russia that the u. S. Wont be pushed around

© 2025 Vimarsana