baby blimp has been given the go ahead. it will take flight for two hours and the #trumpbaby was born. christine romans has more on the trade war on "new day" have a great weekend, everybody. this is cnn breaking news. we want to welcome our viewers in the united states around the world. overnight president trump launch add tray war with china. china gave back retaliatory

tariffs. they believe scott pruitt was forced to resign. a stunning admission from the secretary saying they have reunited zero families in the last week. that may not even be the most glared admission here. they estimate the number of kids in custody today, separated by the u.s. government, is fewer than 3,000. he estimates. these are children. they are rounding. these are children separated by the u.s. government. it seems they didn't even have the competence or decency to count them. and last night rescue efforts to rescue a soccer team

in thailand. they say they have a limited amount of time to get these boys out alive. this is a trade war between the u.s. and china and it is on and real. at the stroke of midnight, the u.s. his china with tariffs on $ $34 billion in goods. china rekaluated and immediately starred the largest trade war in our history. the farm goods are strategic. they hit states and counties that voted for president trump and the u.s. is targeting high-tech industries like aero space, autos. american companies imports the goods will pay the tariffs when they import them. so far the u.s. avoided slapping

tariffs on things that consumers buy directly. they're trying to minimize that politically. but the u.s. won't be able to avo avoid putting tariffs on those goods. we imported about $500 billion from china last year. it is limited, it can probably be absorbed, if it gets bigger we'll feel it. and pork producers, soybean producers and farmers, they will be reduced. 100 soy bean grower wills be in washington next week to talk about how it helps and hurts

them. >> i'm interested in this because the president always said that the u.s. is being screwed over and under my wife they will not be any more. so is this good. the economy then? >> it is probably a net neutral. if you deny have that happening right now this would be a bigger deal. right now because you have strong growth happening already in the u.s., you could probably short, but talking about $34 billion or more. >> look, steel manufacturers, what bigger industries are along. it is the manufacturers that will be paying or are already paying that higher price.

>> this is happening right now. to make stuff in this country and we're paying more. the president ps to help domestic producers, but you could be hurting farmers, the farm economy has not been great in the last few years, so the economy is so great that we can fix trade, we can be the strong people to fix trade because the u.s. economy is so great. that doesn't pertain to the ag economy that is not so great right nougt. there are growers that feel like they are being sacrifices for steel workers. >> and there was in an interview a man in south dakota that said man, you're messing up our mark. >> i think china will be hit

immediate i will be this. the u.s. still has strong growth. there is never a great time for a trade war, but this is about as good as any. >> there has been a lot of time here to understand what is happening. $16 billion in tariffs later this number. i think it is manageable. if you done get progress on what the u.s. is trying to do. there is escalation and retaliation around the world. trade wars and tariffs are so dangerous. you never now how they're going to spin out of control. >> we have seen a little progress from the europeans recently. you can't fight everybody at once. china would have said the same thing, but with the trump administration fighting not just china but our nafta allies, you

can't do all of that at the same time. >> some great resources if you wanted to start a trade war with china is europe. all of the members of tpp that we ran away from. that's who you want on your side if you're fighting a trade war. >> one of the big ironies is that harley davidson was looking to move to thailand because the u.s. pulled out of tpp and american made bikes would be hurt. and then steel and aluminum hurt, and three ways harley davidson got screwed by the president's trade policy and people look at them as being unpatriotic. >> so john, can explain the political calculus here. that the avisors decided that

the farmers who will be hurt don't hurt at the polls as much. >> this is on the president's long-term to-do lust. he has a longstanding belief that trade imbalances are really simple. if you look at the countries or the states most likely to be hurt by these tariffs, iowa, soy beans, pork, nebraska, illinois, they are states that trump won handedly. these are states that trump relied on. i don't think they're playing clesz and thinking several years out. this is high takes.

people don't know what they're going to have happen every time they walk into the administration and walk out. >> yeah, they are die metically opposed views. they don't know where the president will end up. >> the president is pulling the trigger. he wants to do this. mexico this week, they doubled their tariffs on u.s. pork to 20%. that is a big deal. this is a, you know, they're fighting a war on many fronts here. >> let me quickly ask today, the fed says there is nothing to do, they say this is on you from a policy standpoint, but can a trade war get bigger as it goes on, can it be recessionary? >> absolutely, and if you look at the bond market right now you

see long term interest rates are trending downward, that means they think it could be continuing on for a few years. >> but the president is very confident. it is so strong. they're not worried about a trade war triggering a recession. they're more worried about making sure the president follows through on his threat and promises to be super tough. >> thank you, the domestic markets did turn red, they're down now a little bit. not a lot. but we are watching them all morning long. meanwhile, scott truth pruitt i at the epa because of "unrelenting attacks against him." >> lotion is not being investigated. lotion gate is not even one of

the top 14 things. >> phone booth gate -- >> and he was guilty of that one. >> cnn is waiting patiently in new jersey at the president's golf club with the latest on this. good morning, scott pruitt has been battling all of the scandals, and his resignation has been met with a lot of relief. souses say that white house officials were cheering when he resigned. i was there with the president who mentioned the scandals and said he was not really bothered by them. he told reporter there is was no final straw. he felt he did not want to be a

distraction for the administration. the president claiming that pruitt was not fired and said there was nothing to do with the mountain of controversy that surrounded him that worried him. >> we have seen scandal after scandal. i don't e appreciate it. >> pruitt is facing 4 federal are probes from his time in office. he doctored records to hide evidence of calls and meets that could be a federal crime, and spent lavishly on travel on the taxpayers time. instead he saying his scandals

hurt and attacks on my family. >> but they are still refusing to say how many chirp separated from their families are still in u.s. custody. still, azar insisting they will comply with the court order deadline to reunite families by july 26th. >> we're working to comply with the courts order. >> they're using dna tests to

speed up the process. >> still, president trump remaining tough. and thousands of parents waiting for moments like this guatemala woman's reunion with her daughter. >> the president will meet with mike pence. he says he was down to three or four candidated for the court. wheeler will be taking over for pruitt. he was a former coal lobbyist.

a lot of folks on the left concerned about this pick. the president said he likes wheeler, he think he might do a great job and in the post for quite some time. we will be talking more about wheeler and what we know about him and what happens with scott pruitt and all of these informations he investigations he is facing.

a. the scott pruitt era is over. joining me now is brian car eer igan. now we know how many investigations it takes to out an official, i guess it is 14, or 15 is too many. >> yeah, you know i had an intern law student put together a list of his -- >> we have a scroll we can put up right now, and we're not looping it. this is the investigations. but our scroll is many minutes long. to your point, walter, here we go. it is stunning. it is stunning what this guy

did, walter. words fail. are these investigations still going to proceed? >> yeah, they're going to continue. and you know there is at least some remote possibility that he could still face some consequences. i think the bigger issue for all of sus that tus is that the new scott pruitt. if congress, the white house, or anyone else criticizes you, you could point to this ridiculous risk. you could say i still have 12 pages of violations to go so i'm good. >> the president had a chance here, he said i did this because scott pruitt crossed the line, he said there was no final straw here, but reporting is that he

pushed him out. >> yeah, kelly did what kelly does which is deliver the final bullet. but this really does say that if you have 12 ethics investigations and you're doing the industry's bidding, if the special interests are in your favor, you can rack up all kinds of investigations and be fine. i think many types the straw that breakth the camel's back is just the distractions. >> the camel is buried in straw. >> there is a camel in there somewhere. >> it dun matter about special interests. he lasted as long as he did because he is donny's boy. that is the tale of the tape. other people will not get that many investigations.

it is that he was there doing what trump wanted. he was destroying the epa, and the guy coming in is maybe even worse, but he was doing the president's bidding. what i heard yesterday is that in june he was going to leave, but he want today stick around for the fourth of july picnic and fireworks display, and then left the day after. so that is telling in and of itself. >> it's a good fireworks display. >> are you talking about the fire wo fireworks display or his -- >> we have exhibit a. the letter he wrote to the president, we have to read a portion of it. my desire in service to you has been to bless you as you make important decisions for the american people. i believe you're serving today

because of god's providence and i believe that same providence brought me into your service. >> in all seriousness, one of the things i want to talk about is his service to trump, not his service to the people of america. he believes it is what brought him in and that's why he did what he did. this is probably the most corrupt individual i have ever seen. he makes donald trump looks like a choir boy. he destroyed the epa. the lotion, the baskets, the mattresses aside, that is all comic side show to the fact that he is destroying the epa.

>> it puts the lotion in the basket. but the really serious stuff, a lot of them had a surreal certain common quality to them, right? but ultimately it is the policy that's are being put in place and they are priorities. his former aide who wrote a book that called climate change a hoax. and he will be better at it because he is lower key, he knows how to work government. he has been in government. he could be more frightening in thael ro man in that role pulling the level for the destruction of the environment. >> i think for me it was about the evidence issues. all along we knew he would be

replaced with someone with the same outlook. and his deregulation night withstand challenge. for me it was always the ethics issues. having skrothdcott pruitt on th rampage he was on and most members of congress were not interfering. we will continue to follow this. an incredible tragedy in thailand overnigh. o overnight. one rescuer died in the attempt to get them more oxygen you might take something for your heart... or joints. but do you take something for your brain.

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a former navy diver has died after running out of oxygen in one of the tunnels. now they say there is only a limited amount of time to get the boys out alive. as you said, what a tragedy. >> well that's right, a tragedy. now officials are saying the window they have to work with to get the 12 young boys out safely could be rapidly diminishing. officials say they have a short window because of the rain that could be coming in the next few days, and because of the oxygen levels in that place where they have been held up for two weeks. and the tragic death of a navy seal diver who ran out of

oxygen. they just say that they need to get it done. people will train for years to be cave divers like this. the boys that we are speaking about, as the officials come in, they're speaking about getting them out with no training or little training. they managed to get a lot of water out of the caverns. if they can dive a smaller amount that is a better snare you, but with rain in the coming days, they will have to just do it any time now. >> thank you for being there and staying on it, we will check back with you. meanwhile as you know we have been covering this for weeks now. health and human services does not have an exact number of

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okay, as we have been reporting for many days now, a federal judge ruled that parents must be reunited with their children if they were separated at the border. in the past week, no parents have been reunited with their children. they have been stonewalling and not answering questions about this. they gave a very rough enough, a striking number, he said under 3,000 children are still separated, okay, that is a high er number than we originally heard. when you check out at a

restaurant, there is more tracking than what these kids are. >> yes, they just split up these people, pretty e fish enly by the way. they really scattered them in just a few weeks. now they have to try to put them back. these outsiders don't know how to run government, but insiders have a way of getting stuff right when it comes to something important like keeping familiesinfamilies ing together. it looks sop sloppy -- >> and mean spirited, they didn't want to reunite them pb it was to the deterrent. >> yes, the deterrent is not --

the mean spiritedness is absolutely. the depravity of the trump administration is on display with this much they wanted to separate these children and they had no intention of putting them back together. they were either too incompetition to count, or they don't want us to know the number if is scary and i have to tell you there is no way this was done willy nilly. it was done with a purpose in mind, it was designed by steven mill miller and john kelly, and it is part of the design of this government to rip people from their families and keep them out -- >> let's listen to secretary azar.

i was surprised they sent him out there with as little information as he provides. let's listen. >> first, again, i want to be really clear a couple of you have said the word 3,000. it is under 3,000. i want to give you an outer bound. under 3,000 and that is the maximum that it will not be. 3,000. it will not be close to 3,000. it will be under 3,000. >> i thought it was stunning, john. i just thought it was stunning. you can argue the merits of the policy. how it was done, i -- no matter how you feel about protecting the borders, the idea that they don't have an account. they separated chirp from their apartments. we' parents. we're talking about children. >> the secretary is ball parking babies because they don't know a

number. say say the outer limits of 3,000, that's catholic speak for we don't have any clue what we're talking to. and they have until tuesday to reunite children under five. >> it doesn't look like they're going to -- >> i don't think there is any real -- they're going to tell the court we tried. >> as government lawyers said previously there was never a plan to reunite. now they're scrambling. >> this is why we use the boring word "policy" when you have all of these different mandates. the court says one thing, the mandate says something different. this is why you hire people in government to try to figure it out and make a policy before you start. >> and quickly, you can't say that you're tough on law and order and then ignore the rule of law. that is exactly right. john let me push back a little bit. this is what people are telling

me inside the system who are saying look, we never had a plan. i'm just telling you what they said, the car scary part about s that they're avoiding the rule of law. they're saying we don't need judges, just take them, get out. he is like the old man standing on the lawn saying get those kids off of my lawn. he literally said that. he is absolutely right. i think that is a good segues to something else that the president said yesterday. he was at a rally in montana. he choose to attack the line used by george w. bush when he was talking about valolunteeris. and he was talking about a thousand points of light. he wants to spread like stars welcome like a thousand points

of light in a broad and peaceful sky. this is what donald trump had to say about it last night. >> of all of the rthings we hea. thousand points of light, did anyone figure that out? thousand points of liekght. what is that? has anyone figured it out. george h.w. bush's speech. he called for americans to rally together. >> it was not a simple slogan. but beyond that -- what he is saying. >> and he is running down a 90-year-old. >> this is a sort of -- the

trump president's is small, right? this has been an invitation, from the time he came down the escalator, he has invited us to turn our back on our deeply held traditions. talking about volunteer spirit in the 19th culture sin century. i done think it works in the end, but it is one more piece of ugliness. >> let's be more pointed than that. mr. president just because you're too stupid to understand what president george bush meant, doesn't mean the rest of us are. >> what is the strategy in mocking a former republican of your own party, president, and war hero. who does that work with in. >> it works with his base. it -- let's be honest, there is

no longer a g.o.p. there is a trump party. and the members of the g.o.p. including flake and members of the tea party segment of that party have flaed. people that are left in the g.o.p. are those who have a loyalty to donald trump and they worship donald trump. >> a large part of the base -- the argument that the conservatives have made is that the american spirit of volunteerism off sets that. >> we have to get to another topic, he is also mocking the me too movement last night. he made a joke last night about elizabeth warren. >> they always want me to apologize for saying it. let's say i'm debating pher.

you know those little kits, learn your her teenage, we have to do it gently. we're in the me too generation. and we will very gently take that kit and we will slowly toss it. hoping it doesn't hit her and injury her arm. >> this is a man who has somehow been able to be teflon against the accusations of sexual misconduct and assault against him. >> let's not ignore the racial slur either. you want to go down a dark road with me? everything that we held sacred

and going to a new place. you have to make a choice. that's what you do every day of the week. >> you know what i is interesting, is i was on tv last night while this was happening, and we had some trump supporters, and other people supportive of the president that cringed when they heard this. they know the political reality which is the last ten polls or so, there is a 26% gender gap. 26% as you go into the midterms. with that kind of gap, with that kind of energy among women, making me too jokes is not good politics. not at all. >> but that is is not a dpgap,

is a canyon. >> mike pompeo now in north korea. she there for crucial meetings with the north korean lead tore find out if kim jong un is genuinely serious and will deliver on denuclearization. news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪

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save up to 15% itthat's why i lovel the daily fiber wfiber choice,ood alone. with the fiber found in many fruits and vegetables. fiber choice. the number one ge recommended chewable prebiotic fiber. . mic pompeo is now in north korea meeting with kim jong un. there was a summit in singapore where they signed a document. now mic pompeo is in north korea, what does he believe? >> he needs to lead with an

understanding that what we saw happy unfold in singapore meant something. because of course kim jong un's father and grandfather had signed or agreed to much more specific plans that kim jong-un agreed to in singapore. can mike pompeo in the next day and a half work out with the koreans a time table to implement this that would make clear that the pledge meant something. secondly a system that would be building in verifyability. the ability to check that the north koreans are doing what they say they're doing even if they don't turn in their nuclear weapons in the opening stages. i think the third thing is provide north koreans with

concrete assuresanceassurances. >> what we have seen from the satellite photos and heard from the intelligence agency is that we have seen these photos still up and running in some places accelerating. it does not look that the evidence is that north korea is series about denuclearizing. and the president said on twitter and at a rally overnight is that since singapore, north korea has not shot any missiles, they have stopped missile testing, so we're winning. is that merited, or are they not testing them because they already tested them and they worked. >> that's right they don't need to do much more testing now. but at some point, they would probably need to conduct at least enough tests to ensure they could reach a city in the united states and achieve the

reentry of a nuclear weapon through the atmosphere so it could survive. they're not entirely done. compare what the president is saying and what he said last night to what his former secretary of state rex tillerson used to say when he still had the job of secretary of state. a mere freeze on testing of rockets and of course of the nuclear weapons themselves, is a nice first step, but itdoesn't actually achieve what we need to achie achieve. full denuclearization means they have to give up the production. it is not hard to turn tests back on at any moment. the only real test here is the one that the president himself and the secretary of state laid out, which is complete verifiable and irreversible denuclearization. that is hard to achieve. >> the president in this administration are putting a lot

of eggs in the personal diplomacy basket. and to wit, they are saying that secretary pompeo brought with him a cd of "rocket man." he didn't know what the insult was when he was calling him little rocket man, are so showing up with a little rocket man cd. personal diplomacy, what are the limits when you're dealing with north korea? >> it is a start. if you don't have personal diplomacy with the north korean leader and trust built in then the rest of this is not going to happen, we know that north korea is a very top down society. we also know that it does not rule out personal lists. i made the point that if john f. kennedy emerged from his first

meeting in 1961 and said that the cold war is over, we're no longer under threat, we would have been in for a big surprise when the cuban missile crisis happened the next year. the problem was not the meeting in singapore. that was a have good first step, but when he came back he pretended the problem was involve solved. rather than saying we still have good chemistry and we'll see if he is ready to deliver. >> thank you, david. >> john, as of midnight last night, are the u.s. is now in a trade war with china. the u.s. imposed tariffs on china and china is retaliatinre. . the luxus high performance line.

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your "new day." tariffs of $34 billion worth of chinese goods, china hit back with tariffs on u.s. goods starting the biggest trade war in u.s. history. u.s. farmers and manufacturers on high alert this morning. what are the consequences. meanwhile, scott pruitt has left the epa. now a former kohl lob eer coal s over. >> if they done know the number, how can they reyou night them? let's start with our trade war correspondent