[Brooke Baldwin, Cnn:] The world's two biggest economies are now war over trade in the week of President Trump's whopping 25 percent tariff on Chinese exports. China has just retaliated with its own tariffs against the U.S. It will also impose a 25 percent tax on $50 billion of U.S. goods. Christine Romans, CNN Money chief business correspondent, explains the potential impact on American consumers.
[Christine Romans, Cnn Money Chief Business Correspondent:] Brooke, the president this morning on his trade agenda, saying the U.S. isn't the one who started a trade war.
[Donald Trump, President Of The United States:] The trade war was started many years ago by them, and the United States lost.
[Unidentified Reporter:] So you're saying we're on the losing end of it.
[Trump:] Well, no, there's no trade war. They have taken so much. So last year, $375 billion in trade deficit. With China. We had overall over $800 billion over a period of years, each year, close to $800 billion in losses on trade. Not going to happen anymore. It's not going to happen.
[Romans:] So the China tariffs are back on. The president says trade with China is unfair. The situation, no longer sustainable. And he's targeting technology that China has vowed to dominate. Xi Jinping's made in China 2025 initiative. There will be a 25 percent tariff on 1,100 products, what the U.S. Calls industrially significant technologies like aerospace equipment, tech, manufacturing, medical supplies. U.S. Companies pay the price. They pay the tariff to the U.S. Government when they import these goods. Companies can either absorb the higher cost or pass it along to consumers. Quick reaction from the Chinese commerce industry, which said the U.S. kept changing its mind and has now decided to launch a trade war. In fact, the tariffs tiff has been on and off. The White House first unveiled this list in March, actually, a bigger list. Multiple rounds of trade talks with China then, a tariff cease-fire, remember, in May. And then the recent summit with North Korea seen by many as a big win for China. But then today $50 billion in tariffs anyway. The Chinese vow retaliation. The White House vows mortar I was if China targets American farmers or hurts Americans doing business in China. The U.S. move is punishment for China stealing trade secrets, for forced technology transfers from American companies, for cyber theft, years of it. And fulfills Trump's pledge to cut a trade deficit more than $300 billion a year Brooke?
[Baldwin:] Christine, thank you. Both of the new tariffs will start to take effect July 6. Now a trade war with China is just one concern Republicans on Capitol Hill have about what's going on at the White House. Senator Lindsey Graham, Republican, South Carolina, was a fierce critic of Candidate Trump, but says President Trump has mostly been an ally, and some Republicans don't like it one bit.
[Kate Bolduan, Cnn Anchor:] Some people say this is two-faced. Where is the Lindsey Graham of standing up to Donald Trump? What do you say?
[Sen. Lindsey Graham, , South Carolina:] Well, I'll tell them when I think he's wrong. Let me just tell you about the critics. When I work with President Obama and I did on occasion, I was a hero. Now when I work with President Trump, I'm two-faced. I know how the game is played, and I don't give a damn. I'm going to do what's best for the country. I like the president. I want to help him. I hope he's successful. He's been a friend to me. And he says some things I don't agree with. So if you don't like me working with the President Trump to make the world a better place, I don't give a
[Baldwin:] Ho! Correspondent Phil Mattingly, I mean, you know you've got this Republican Senator here saying he doesn't give a shhh thoughts?
[Phil Mattingly, Cnn Congressional Correspondent:] So it's complicated. I think would probably be the best way to explain the current dynamics on the Hill. A couple days ago, Brooke, Republicans attacked one another in a closed-door lunch. Primarily over the trade issue, over amendment frustrations, over dealing with the White House, something Lindsey Graham was actually involved in. Look, what Senator Graham laid out was actually I think kind of an important view into how a lot of Republicans look at this administration. Up with of the biggest struggles that Republicans have had, and I've talked to many of them, asked them specifically about this over the course of the last 15 or 16 months, is how best to communicate with this White House and with this president. The normal channels, the normal kind of operational gears that are involved in dealing with the White House between the Hill and White House officials. Don't really exist here. They more or less exist in 280 characters or by the phone. So what Senator Graham is trying to say is, where there are moments that he is opposed to the president and those moments have occurred, even since the campaign, he will say something. When he's not opposed to the president, he finds that it's better to work behind the scenes and try and get something from him as opposed to coming out publicly. Obviously, Brooke, we saw this week Senator Bob Corker really going off at Republicans for not saying more publicly. Senator Jeff Flake, as well. Well, key point. Senator Bob Corker and Senator Jeff Flake are not going to be here next year. You have the political dynamic, as well. Look at the poll numbers, Republicans, the party, support President Trump. So you have all of these different dynamics here. You have issues like trade war, Republicans are opposed. But there's really no consensus in terms of, how do we actually get what we want when we disagree with the president? They're nervous about the politics, and they still aren't totally sure what the best avenue is to communicate those concerns to the guy who sits in the Oval Office.
[Baldwin:] Complicated, indeed. But I got you. Phil Mattingly, well explained. Thank you so much from Capitol Hill. Coming up next here, President Trump making history on the White House lawn today, becoming what's believed to be the first sitting president to just roll up to the media. And there are live shots positioned there on the North Lawn. And what an interview that was. We have details, just ahead.