that wraps up this hour. i'm chris jansing in for stephanie ruhle. have a great weekend. coming up, more news. i'm surprised to see you. i'm looking down and seeing the world cup teams on the field. >> i'll keep an eye on it throughout the show. don't worry. we have to be able to multi-task. thank you very much. i appreciate it. i'm in for hallie jackson. the trump tariffs are here. the white house imposing new rules overnight on global trade. china already firing back, imposing tariffs on their own. making things you buy right here in the u.s. more expensive. the new trade rules landing like a thud on wall street. already, the dow is down. you can see it there. almost 0.03%. president trump ignoring the trade war he started. also memorandum on scott pruitt ousted epa chief.

what happens with the investigations into his ethics? why the man replacing him has the president's backing. we're also watching a new race against time in thailand. the search for the missing soccer team turning deadly overnight. a thai former navy s.e.a.l. lewdilewd i -- losing his life while trying to save the children. we have a team set around the country and around the world. we start with opening shots on a trade war that could affect u.s. jobs and what you pay for this goods and services. china accuses the u.s. of trade bullying and launching the largest trade war in u.s. history. the u.s. fired the first shot at midnight, slapping a 25% tariff on $34 billion worth of chinese products. that includes aircraft parts, diesel-powered trucks and busses, and flat screen tvs. the trump administration

escalating the trade standoff to get china to crackdown on the theft of u.s. intellectual property. president trump is threatening to impose additional tariffs on $500 billion in chinese goods. well, as you can imagine, china is retaliating. imposing new tariffs on u.s. soybeans, beef, pork, poultry, seafood, suvs, electronic cars, and whiskey, all affected by the trade war. the u.s. chamber of commerce says 17,000 jobs tied to the kentucky whiskey industry alone could be impacted, as well as $180 million in exports. meanwhile, you could have to eat the potential price increases as a result of this ongoing tariff war. a supplier who makes the pressure cookers for chick-fil-a sandwiches is being hit by the tariffs, which could raise the chain cost of doing business. that, in turn, could lead to higher chicken sandwich prices. american soybean farmers are

also caught in the crossfire. soybean prices are down 17% in the past month, in anticipation of this ongoing trade war. let's get reaction to all of this. the president is in new jersey this weekend at his country club in bedminster. nbc's kelly o'donnell is nearby and joining us live. for the trade war, is there any sign of who might blink first between china and the white house? >> reporter: well, good to be with you. this is one of the longest-held positions of president trump. when he was a businessman and over the sweep of time, he's been complaining about trade with china. now, in the power of the white house, he is leveraging that. at the same time, he's often talking about his personal friendship with president xi. we're in a critical time. there have been teams of negotiators from the u.s. going to china, working on agreements related to changing the balance

of trade and trying to especially deal with areas of who will own the future of technology. there is a great deal of friction between the u.s. and china over them sort of taking american technology. that has been a long-running intellectual property battle. of course, you have the real-life impact of how will costs will affected on consumers? the u.s. took the first wave of tariffs, trying to impose them at a -- not a consumer level, but at a business to business level, to try to slow the potential of impact on the average person's spending. however, we have to see how long this goes and how real the effects are. we do hear the president from time to time talking, especially when he is in a part of the country where farmers have a stake in this. thi they could see a real impact. he's talking about the issues. this is a heightened position. it is a time where there could be leverage. this is an unusual territory for the u.s. and china after a long

time of tension over these issues. what comes next? likely, more negotiation. >> likely time for global markets, as well. kelly o'donnell live for us. thank you for that. speaking of global markets, let's get reaction from wall street, where stocks are flat in the trading hours this morning. we'll have a new jobs report out, which i believe came out not too long ago. msnbc's david gura is on wall street for us. let's talk about how this is playing out, both overseas, but first off at wall street. are investors digesting the latest developments, both on the trade war in a negative way or positive way, david? >> reporter: let me hit the job numbers first. a little while ago, the latest report for june coming out. 213,000 jobs out of that, more than many people thought we would see in the month of june. the unemployment rate ticking up to 4%. a mixed report but largely positive. now, let me turn my attention to the latest on trade. i smoke with a long-time china watcher who said investors, the market is convinced this can't

go on in perpetuity. someone is going to blink. going back to what kelly told you a moment ago, yes, there have been all these delegations and trips to beijibeijing. u.s. officials meeting with counterparts in beijing. there are no plans for other meetings to take place. that is concerning when you think about how long this might go on. as kelly mentioned, $34 billion in tariffs levied by the u.s. that met by the china's in equal sum. $16 billion worth of tariffs in august. potentially more after that. it's really where the economics marries with politics that worries a lot of people. the chinese don't have to worry about the political considerations that the u.s. does. yes, there's bourbon that will be subject to tariffs. all these agricultural products, as well. there is a midterm in 2018. a general election for the presidency in 2020. that is not a concern for the chinese leadership. that gives them more leverage, as we see this play out. >> david gura live at the stock exchange this morning. thanks. i'm joined now by former

chief economic adviser for vice president joe biden. jared, great to have you with us. let's break down what we're hearing in terms of the trade war. obviously, the impact of this has people concerned. not immediately felt on wall street, the asian markets, as well, in the early hours of trading, but what is your biggest concern, now that the trade tariffs have gone in effect, both here in the united states and china, as well? >> it is a great question. as you heard, our job market is in good shape. one thing to keep in mind is many workers have still been left behind, even as we enter the tenth year of this economic expansion. for example, we found out this morning that wages are growing 2.7% year-over-year, while inflation is also growing at about that rate. that means real hourly pay for middle-wage workers is flat right now. while we have a solid economy, we don't want to mess it up. one thing i will say, donald trump inherited a good economy. he hasn't wrecked it yet.

but this trade war, i think it is going to hurt a lot more people than it is going to help. i'm nervous about its impact, even in the medium terms. >> let me zero in on that. we have a strong economy. the question becomes, was a protractor trade war impact the fundamentals of our strong economy? you're concerned president trump may do something about that. let me read this to you. we got a better than expected jobs roreport for june. 213,000 jobs. unemployment slightly rose from 37 3.8% to 4%. are the fundamentals strong enough to withstand this trade war? if so, how long? >> i fear that some of the fundamentals aren't quite as strong as those job numbers suggest. for example, where we've not seen enough benefits flow to enough people is on the wage side. here is where i am concerned

about the trade war. the reason is this. it is a fundament cal poial poi underlies this whole trade war. that's the fact that globalization is so embedded now in american production. there are no pure american cars. in fact, one of the cars with the most domestic parts in it is a honda. bmw's largest plant in the world happens to be in south carolina. every car that you see is an imported car. every good that you process tends to have imported come p e components. when we throw tariffs on goods coming into the country, we're not helping domestic producers, when the products are inputs into what they create. that's why i'm afraid this is going to eventually, if it lasts, hurt american jobs and consumers. >> i want to play this sound bite from the president of the u.s. chamber of commerce in china. take a listen to this. >> i don't think anybody wants

to see a trade war. nobody -- no one wins. it is really not just the u.s. or china. it is really impacting the whole world. >> so, there's two parts to this. one, there is obviously growing concern that there is not enough movement to resolve this. the u.s. is concerned about china stealing intellectual property from the u.s. the chinese aren't making enough head way on that front. at the same time, it seems the president is not backing down, and there are no scheduled talks to try to resolve this. >> exactly. if you look back on the history of these trade conflicts, there was much more discussion between us and our trading partners. this was the case with japan. this was the case with europe. in fact, we had out of these trade wars in the past voluntary agreements that came out of them. our partners would agree to buy more from us. i don't see any of that happening. to me, at the heart of this,

along with that globalization point i made, is that donald trump may have a reputation of being a great negotiator, but he doesn't look that thoughtful at all when it comes to the way this is unfolding. i think part of it is that his economics team is fighting about that, so there's kind of an unsettling bit of infighting going on within it. but there are no channels with which to resolve this in the near term. that's whyimpacts. >> the art of the deal being questioned here. >> exactly. >> thank you very much for that. president trump under fire this morning for mocking the me too movement in another attack on senator elizabeth warren. >> in the middle of the debate, when she proclaims that she's of indian heritage, because her mother said she had high cheekbones. that's her only evidence, that her mother said she had high cheekbones. we will take that, but we have

to do it gently, because we're in the me too generation. we have to be movery gentle. we will gently take that and slowly toss it, hoping it doesn't hit her and injure her arm. >> i'm joined by vanity fair news writer abigail tracy. let me get your reaction to this comment. president trump taking a swipe at senator elizabeth warren, in the same sentence, disparagingly talking about the me too movement and her native american herita heritage. >> it is incredibly offensive to sexual harassment victims who have come forward and who have really, you know, fueled this movement that we're seeing. it is also, you know, revisiting a lot of attacks that he's had before. this is certainly not the first time that he's shown animus to the me too movement.

after rob porter, he said, it was shattering people's lives, those things. i think it puts on display the animosity from the administration toward this movement, especially with the recent appointment of bill shine, as well, who obviously left fox news amid, you know, accusations that he mishandled sexual allegations at the network. >> absolutely. let me get a response from elizabeth warren. she fired back on twitter. hey, president trump, while you obsess over my genes, your administration is conducting dna tests on little kids because you ripped them from your mamas, and you're too incompetent to reunite them in time for a court order. maybe focus on fixing the lives you're destroying. does elizabeth warren risk adding fuel to the fire with president trump? he loves these types of confrontations. is it dangerous for her to tread into this water, so to speak, when the president can go after her more and we keep this as the headline? >> i wouldn't say dangerous. i would say, to your question,

there is a reinforcing kind of loop here. listen to the clip of donald trump. what is happening? people are laughing. while this was played, we were smiling between the three of us. there is something funny about it, even if there is something awful, too. he is providing this kind of entertainment. the tears of liberals are delicious. the more outrage expressed about this, the more the media is upset about this, the more trump and his supporters, whose core belief, among everything else, i think what knits them together is they're animus toward media and the cultural liberal elites. >> is there a risk for other republicans? may work for the president and his base, but other republicans in other parts of the country running in november, do they want to deal with a president that is making these swipes at me too, at women, and native american heritage? >> ask the people who are down ballot. cory stewart is running for senate in virginia. there are people who are vulnerable in positions because

we've had trumpites come to the fore. >> let me play this mashup of sound bites from last night. obviously, talked more than just elizabeth warren. >> all the rhettic y rhetoric, thousand points of light. what does it mean, by the way? does anyone know? we also repealed, despite the thumb down at 2:00 in the morning. we also repealed the most horrible aspect of the failed obamacare. i'm meeting with president putin next week, they're going, will president trump will prepared, you know? president putin is kgb, this and that. putin is fine. he's fine. we're all fine. we're people. >> by my list, putin, bush senior, obamacare, just to name a few. >> john mccain, too.

>> of course. the president obviously -- these are his talking points. we've heard them so many times before. is this, from a political point of view, a president who is on the campaign rally, or is this a person who is just kind of venting, or how do you analyze what we saw last night? >> one of the things we've learned the last year and a half is donald trump doesn't like governing but he likes campaigning. i do think looking at his rallies, this one included, the past several months, it really paints a picture of what we can certainly expect up until the midterms and through 2020. i think that his natural state is in campaign mode. i think everything we watch is certainly, you know, his playbook, in what we can expect to see. >> it is also part of reshaping the republican party in his image and not of george w. bush, george h.w. bush, john mccain. >> even ronald reagan who, according to trump, didn't win wisconsin and he did better than

him, i guess. facts don't matter, right? thank you for joining us. it is our swamp watch. scott pruitt may be out of the job but not the woods yet. is his replacement just as toxic for the environment? plus, the swamp at the white house is still far from being drained. we're going to look at life inside trump's cabinet. the perks, the posturing, the power struggles. stay with us. w apartment? yeah... but popping these things really helps me...relax. please don't, i'm saving those for later. at least you don't have to worry about renters insurance. just go to geico.com. geico helps with renters insurance? good to know. been doing it for years. that's really good to know. i'll check 'em out. get to know geico. and see how easy homeowners and renters insurance can be. if yor crohn's symptoms are holding you back, and your current treatment hasn't worked well enough,

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brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back. this morning, we are back on

swamp watch with our eyes focused squarely on the epa, where there are still a lot of burning questions following scott pruitt's exit. first, what will happen with the 15 separate investigations into pruitt's time at the agency? second, does pruitt's crusade to roll back environmental regulations still have legs? third, what does pruitt's resignation mean for the rest of trump's cabinet? first of all, the $43,000 fake security booth he installed. the first class plane ticket at taxpayer expense. the bullet-proof suv. the mattress he tried to buy from president trump's hotel. and his security detail tracking down a lotion sold at ritz-carlton hotels. and his efforts to get his wife

a chick-fil-a franchise. and also asking his aides to find her a $200,000 job. that didn't stop the president from singi ining pru ining prui >> the epa is doing really well. somebody has to say about that you. scott pruitt is doing well within the walls of the epa. we're setting records. outside, he's being attacked viciously by the press. i'm not saying that he's blameless, but we'll see what happens. >> joining me now is julia, "washington post" senior national affairs correspondent who has been reporting extensively on pruitt's time at the epa. you've probably been one of the busiest people in washington. and zeke miller, white house reporter writing about what life is like in the trump cabinet. julia, 15 different investigations. we have the list here. the epa inspector general has

eight open investigations. the government accountability office, three. the house oversight and government reform committee has one. the office of the special counsel has one. white house has two. a total of 15. where do all of these investigations go from here? >> great question. the short answer is that many of them will continue in some form, particularly the inspector general's office in epa. they're committed to seeing these through. it is what they do. sometimes, they even, you know, issue their findings after an administer has left office. so, they've been working at a relatively slow pace, from what our reporting shows. so, we're certainly expecting one of the first reports to come out in, you know, this summer, which would address the issue of his security detail in some form. so, we will see those roll out. in terms of, for example, the house oversight committee, i would imagine that they will issue some sort of report. at this point, they may, for

example, stop doing interviews. we're waiting to see what happens with that. obviously, there was an expectation that administrator pruitt would appear before the committee before they finished a report. that is an open question. then, the office of special counsel will also continue to look at what it is doing because it is obligated to investigate whistleblower claims. a number of them will go on. i think the one that would wrap up the most quickly is the white house. they have no obligation at this point to continue with their probes. >> fair point on that. let me ask quickly about andrew wheeler. nbc news had this headline talking about hit. scott pruitt replacement andrew wheeler won't be any better for the environment. i'm curious to get your thoughts about wheeler. we know he's had some ties to the coal industry in terms of policy. are we likely to see him continue the policies that pruitt pursued, and perhaps even be more effective because he won't be grabbing as many headlines, scandal-ridden headlines the same way that --

>> absolutely committed to following those policies and executing many of the regulatory rollbacks that were started by scott pruitt. i think on that end, it is true that as someone who served in the epa, worked on capitol hill, and also worked in the private sector as a lobbyist, he is arguably much more steeped in the minutia of the policies. he really knows how to attack them. he's been addressing them in a workmanlike fashion, since he's came on board as pruitt's number two. he will pursue it. he did, however, in his first statement to employees, vow to protect public health and the environment, which is not something that came up in scott pruitt's initial speech to employees. we'll have to see how the style and tone may shift. in terms of substance, we're not anticipating a huge departure from what we have seen so far. >> i want to ask you about your piece, zeke. it was a fascinating read. obviously, scott pruitt is out,

but we can safely say the swamp is not drained in washington or at the white house, for that matter. i know your new piece, the perks, posturing, power, and putdowns. there are a lot of interesting names here. some have been bounced around, ryan zinke and wilbur ross. they've had their share of unflattering headlines. who do you think is next in the scandal-ridden trump cabinet? >> hard to say who is next. it really has less to do with the headlines that are out there than it has to do with the headlines that make it across the president's desk. scott pruitt was able to withstand the pressure for so long pause tbecause the preside some cases, ignored the news coverage about hit, the scandals around him, because he was happy with the job he was doing. what this piece gets at is the uncertain nature of the president's cabinet. people around the president are never quite sure where they are in his orbit. is he happy with them? is he not? it can go from hot to cold in a

matter of seconds. earlier this week, looked like prewitt was going to withstand the latest round of scandals. the next turn of a screw, almost without warning, there were no leaks about pruitt submitting his resignation, but we are reporting he was forced to by the white house chief of staff, but the president finally started paying attention and made that decision over the holiday. >> let me ask you. i'll take the point you were making at the end and advance it one step further. as you mentioned, as long as these individuals, cabinet members, serve at the pleasure of the president, he's happy with their performance, it seems the scandals are irrelevant. given what we'd heard about pruitt over the last several months, and there was a lot, do you have any idea what happened in the last 48 hours that triggered this from the president? have we gotten clarity as to whether this was a resignation, or was it something from the white house that was forced upon

scott pruitt, and they put it in the shape of a resignation? >> we have been told that he was pushed to submit his resignation. forced to pub mitt his r-- subm resignation by the white house. the president growing frustrated by the zascandals. what was the straw that broke the camel's back? it's not clear. the headlines from monday and tuesday, there are several embarrassing stories. one was pruitt jockeying to replace jeff sessions as attorney general. was it that potentially? it could also be, you know, the ptd w fact could be that the president was happy with the job wheeler was doing it. the time to do it when over the holiday weekend when there wasn't a lot of coverage of it. >> keep up the great reporting, guys. >> thanks. we'll stay on swamp watch this hour. in the meantime, we'll have a lot more for you coming up. turning overseas, rescue efforts to save the soccer team in

thailand are turning deadly. what that means for the boys and their coach still trapped inside the cave. we are live at the scene, where divers are converging from all around the world to try and help.

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welcome back. now, with a look at this morning's headlines. uk officials are searching for the source of the highly poisonous nerve agent that left a couple fighting for their lives. authorities arriving at one of the victim's homes. police say charlie and dawn sturgess were exposed to the nerve agent. serena williams facing mladenovic. williams is ranked outside of the top 150. she's working her way back from dropping to 453 because she was away from tennis on maternity leave. now to the urgent rescue mission for a boys' soccer team trapped in a cave in thailand. a navy s.e.a.l. ran out of air in his tank and fell unconscious

making his way out. this is the latest setback as officials scramble to keep the boys and their coach safe and out before monsoon rains add to it. bill neely, walk us through the tragedy, the latest developments, and how it may have hampered the rescue efforts. >> reporter: good morning. while on the surface of it, it hasn't hampered the rescue effort, which continues here 24/7. commanders are now ready to risk an emergency rescue, rather than let the boys be at the mercy of monsoon rains. i talked to two of the divers' colleagues. they were clearly upset. even a little scared. they said, we won't stop. we won't let his sacrifice be wasted. you know, if anything gave you the sense that these boys face a great risk if they're going to

go out through the entrance of this cave, then the death of the diver overnight really underscored that. he was highly trained. highly experienced. he simply ran out of oxygen. if that can happen to him, what about these boys? they are also more at risk now from a new threat. it is from the very people who are here to help them. there are now so many divers, so many volunteers, that they are using up a lot of the oxygen in the cave complex behind me. the result is that they've brought in cables, basically an air supply to pump oxygen into the cave complex. american divers have now joined this effort. they're part of a 30 strong team. it is, of course, an international effort. parents, we don't know whether they actually managed to talk to their children half a mile down below where i'm standing now, but telephone cables have been

installed. for the parents, this must be agony. they are watching their children. watching the risks to their kids rise almost every day. >> yeah, indeed. it is a race against time and a fight against the elements. bill neely live in thailand. thanks. secretary of state mike pompeo arrived in north korea early this morning. meeting a high-ranking senior official in the hopes of getting new details about the country's plans for complete denuclearization. the south korean media saying he came with a gift for kim jong-un from president trump. a cd of sir elton john's song "rocket man," the name president trump gave kim jong-un during the height before their summit. i want to bring in richard en l engel. what have we been able to learn now of the objectives of mike pompeo's trip this time?

>> they say the objectives, this is pompeo and his staff -- that the goal is really to fill in the blanks. there was this summit between president trump and kim jong-un of north korea. and they left with this very vague letter, committing to the denuclearization of the korean peninsula, and fostering a new chapter of relations between the united states and north korea. there were no details. that was it. it was sort of this statement of principles. there was no timeline of when and how the north koreans would get rid of the nuclear weapons, there was no account of how much they had, there was no verification process. we're now, with this visit, trying to put some more meat on the bone after president trump was criticized quite roundly for having this summit in a bit of a reverse order. having the summit first, and

then working out the details later, instead of a more traditional approach, which would be working out the details, then culminating the effort with a final summit. >> i want to pick up on the point there, putting some more meat on the bones. here's what the president said last night at his rally style campaign event -- or event in montana. take a listen to this. >> i got along very well with chairman kim. i got along very well. that's a good thing, that i got along well. we signed a wonderful paper, saying they're going to denuclearize their whole thing. it'll happen. i was back six days, i think. why hasn't it started? why? i mean, these guys. obama was very close to going to war. >> to that point, joe, the president essentially pushing back on the expectations of people that expect a substantive

deal and a concrete timeline. is that a fair assessment, or do you think that where we are in terms of these talks, these trips, that we should have a clear, more definitive outline, as to what we should expect? john bolton has given it a year. what do you think about that? >> well, a year to denuclearize is complete fantasy. we have john bolton and president trump setting the expectations. he says that kim agreed to complete denuclearization. he did not. that's not what the vague statement said. all we have so far are shimiles and handshakes, and an agreement to some general goal. pompeo is on the hook to create a deal. that's what he has to do. he's lowering the bar. he's setting his initial steps very -- baby steps, you might say. he wants to come back with an initial list of nuclear sites and an inventory of weapons and materials. that would be a good step. it is a long way from even a

complete list or the complete, verifiable, irreversible, dismantlement, which is what the president said was the goal. still, we should hold judgment. the fact that we're at least moving in this direction is a lot better than the threat by threats process we had just a few months ago, with kim doing missile and nuclear tests, and trump threatening nuclear war. >> from that perspective, what would be a success for mike pompeo on this trip? it seems he personally is on the hook with his personal relationship as a cia director with kim jong-un, and as the secretary of state. what will it take for there to be confidence in the return trip from mike pompeo with something substantial? >> yeah, it'd be good if he came back with some of the remains of the u.s. servicemen and women lost in the korean war. that would be a sign of good faith. more important would be at least this initial list of inventory and of sites, plus an agreement from north korea to agree to

discuss the procedures for verification. then we'd have a road map. that's what pompeo really has to give. we're not going to get this in a year. we won't get it in two years. if you can start laying out a step by step progrescessprocesss the prospect of some stable relationship with north korea. >> all right. thank you for joining us this hour. back here in the usa, new report putting the spotlight on the pentagon. a group of recruits and reservists being abruptly discharged. it is something that's gone under the radar until now. o) i g the winter of '77. i first met james in 5th grade. we got married after college. and had twin boys. but then one night, a truck didn't stop. but thanks to our forester, neither did our story. and that's why we'll always drive a subaru.

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the pentagon is responding to a new report that reveals big changes to a long-standing u.s. army program. the ap reports dozens of immigrant recruits and reservists have been quietly discharged. folks that had enlisted through a program that promised them a path to citizenship. immigration attorneys told the ap they know of about 40 recruits who have been discharged, or whose status remains unclear. at this hour, the total number is still unknown. nbc's hans nichols is at the pentagonalso joining us is a contributor to nbc.com. a lot of people are waking up after reading the report and asking, why now? why is this happening? what did the dod have to say about it? >> reporter: the pentagon hasn't

been clear if there is a change on the program, which started at the end of the bush administration. it was a way to bring in immigrants with specialized skills. if you were a doctor, if you had language skills, if you were here in the u.s. heel legally, student visa, you could enlist in the military and it'd be a pathway to citizenship. 10,000 individuals have been enrolled in the program. the lawyer who set it up thinks it is a great success. a former lieutenant colonel. she is out in alaska now, bringing suits to reservists who thought they were on the way to citizenship and, for some reason, had their contracts cancelled. what we need to find out is just why these specific recruits have been cancelled. did anything happen. ♪ i'll read you a quote. due to ongoing litigation, the defense department cannot provide anything further. for army-specific personnel

action inquiries, contact the department of army affairs. i think the key is to figure out the scope. just how many of these recruits are affected. crucially, what's the effect on readiness? from secretary mattis, we hear all the time, he cares about lethality. having a lethal force could be immigrants with different skill sets, namely, the 44 happening -- languages deemed crucial. that's what the program was designed to do. we'll figure out more throughout the day and report back to you. >> hans nichols a the pentagon. let's get the reaction to this program and the effectiveness it had, as hans was saying. >> right. >> why do you think this may be happening right now? >> el with, well, it seems to b happening -- remember, this was a program, as hans mentioned, designed to bring in people who

had specific language, cultural expertise, particularly in the middle east and some of the former soviet republics, where american soldiers do not have the abilities. what seems to be happening is now, the trump administration is looking at those same family ties and cultural ties and using that as an excuse to discharge them from the program. do you see the roundabout way of thinking there? >> yeah. >> many americans might be surprised that non-citizens, immigrants, even serve in the military. on a given day, between 8,000 and 10,000 non-citizens are serving in the military, including daca recipients. the problem with where we are now with this program, one, it is creating a bias in the way these servicemen are treated. some of the people in the military are upset because they say this sense of policetizat pn of the military, keeping separated families in military camps, that this is bringing

politics into the military. by and large, it is still an institution that americans have faith? >> i want to read breaking news we're getting. today was a significant day. the justice department has, in fact, asked a federal judge to extend the court mandate deadlines for reuniting 3,000 migrant children, who were separated from their parents while crossing the u.s./mexico border. attorneys for the u.s. government are claiming that the cou court-mandated deadline for returning all children under the age of 5 to parents by july 10th and all other children by july 26th did not account for the time required to verify and vet each parent. this was something we've been talking about. i know you and i talked about this in the past. >> right. >> whether or not the u.s. government could meet this deadline. identify all the kids and match them up with their parents. it seems they were not able to make the deadline. now, they're asking for an extension. what does that tell you about how big of a problem we are now in?

>> tells us a few things. one, they were not completely honest in the court. when they first met with the court, and there was a june 23rd memo from health and human services that they had a program in place for family reunification. reunification and they had kept record on the parents and children acceseparated from eac other. now, we are seeing a mad scramble where they are going to do dna testing, recruiting volunteerses. that suggests they were not ready. the other thing i do not think the court is going to look kindly on is health and human secretary called it extreme, which it's not. the judge put a lot of thought into it. they are going to have a challenge. >> thank you very much. the president's old lawyer, michael cohen continues to staff up his legal team, bringing on another attorney as federal prosecutes investigate him. a well-known defender of bill

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attorney michael cohen. monday, abc had the details where he said his first loyalty is for his family. he scrubbed his donald trump attorney account and hired laney davis to represent him. he has close ties to the clintons and defended hillary clinton's election loss. david was persuaded to join the legal team after the abc interview because he, quote, recognized his sincerity and believes michael cohen deserves to tell his side of the story. cohen, the president's former attorney is the focus of the investigation in whether he committed a number of crimes including wire fraud and illegal lobbying. joining me now to weigh in on this, former federal prosecutor, seth waxman. good to have you with us.

if you look at what we just outlined there, what does it say about where michael cohen's legal strategy is heading? >> he's considering flipping and working with the government. the dismissal of his old legal team, bringing in laney davis. there's discussion that davis is being brought in to counter message the trump's surrogate attacks if he cooperates. that's somewhat unlikely. when they cooperate, they don't speak. they don't speak themselves or through surrogates. that's why we haven't heard from flynn or papadopoulos. they are cooperating. they are doing things within the cooperation process like bring his cashe. the undying loyalty mr. cohen

was going give, not arguing that mr. cohen is mentally disabled as a legal matter, but rather there's mitigation to that. once you get involved with donald trump, he is an all powerful, all knowing, demanding sort of guy. mr. cohen fell victim to that to argue to prosecutors that the sentence should be lower than it otherwise would be. >> there's talk about how the president characterized his relationship with mr. cohen, he used past tense of liked when talking of him there on the white house lawn a couple weeks ago. there's question on whether or not the president would pardon michael cohen. is there a way for cohen to legally protect himself, but, at the same time, send a signal to the white house that he wants more from the white house? >> i'm sure. he can go on the air and talk through surrogates talking to mr. trump or his attorneys.

he doesn't think a pardon is in it. everything he is doing, talking well of the fbi agents, how he's been treated fairly. all that signals is he is trying to get in the room with the prosecutors to cooperate. in my opinion, the reason it hasn't happened is they are digesting millions of documents right now. the main thing they need from a cooperator is truthfulness. if he tries to minimize his role or outright lie to the prosecutors, they can call him out on those lies or mitigation and keep him on track with documents and text messages and get a cooperator that is being truthful. >> once cohen's legal team takes over the cooperation between the two teams, it will come to an end. is that significant? >> absolutely. this is a joint agreement. they are representing people with common interests and share

information in a way the privilege won't be broken. when you have an adverse interest and that is broken, you have to sever that relationship. that says i can't share information with trump and his lawyers because my interests are no longer aligned with theirs, another indication of cooperation. >> seth waxman, i appreciate your legal insight. thank you. >> thank you. we wrap up with a big picture that comes to us from the world cup. check this out. this is renaldo. on the field, he is one of the biggest world cup stars and, of course, captain of the portugue portuguese team. he will be captain of a new show. he is going to be in a docuseries on the social media giant platform, facebook watch making it the biggest original series yet. this photograph is from getty

images. he has 120,000 followers on facebook alone. halle jackson will be back with you on monday. right now, more news with my colleague, ali velshi. >> i'm surprised to see you here. it's rare we are on tv together. >> exactly. you have a huge following on facebook. >> not like renaldo. have a great day. >> you, too. >> i'm ali velshi, stephanie ruhle is off. she's coming back monday. today is friday, july 6th. let's get smart. >> the u.s. imposing $34 billion in new tariffs on china. china retaliating in kind. >> it could have wide ranging consequences for consumers, workers, companies, investors and political investigators. >> on clothing, iphones. it would have a harder hit on consumers when they go shopping. >> the most worrying thing of all is companies