Transcript for China tariff threat spooks markets
And. Everybody welcome to the briefing room on Monday and Devin Dwyer deputy political director Mary Alice parks your great to have you with us get a good weekend a lot to get to today Mary Alice a roller coaster Monday. On the global financial markets your 401K is doing some swinging today because a lot of concern about what the president is doing the China. Yes and estimates this to be one of the sharpest Chinese stock Pozen more than three years the the president has made threats like this before based on taking to Twitter to. Talk about the possibility of more terrorist but again he's gone down that route and then pulled back and waved to wonder if these are anti drug. Take a look at the markets right now in July Borg now here's the president's threat actually hit his week this is what set everybody got a standing that for the past ten months. A China's been playing at Paine tariffs the United States a 25%. On high tech 10% and into her billion dollars to present their talking about raising them the markets well they don't spot bouncing back a little at this afternoon they were down his knees. 500 points. This morning let's go to the White House now. Where are Meredith McGraw White House our reporter has been tracking mess up all we get along -- of what actually has happened here. To send everybody's. 41 k.'s down in this went today. I DeVon president Ron took Chinese and investors worldwide ice surprise over the weekend. Winnie he has reignited this ongoing trade war win. China and it just came back during the president's men and straight talk but I network. Wow now I the president really dropped a bomb here is when he threatened yesterday parents behind 200 billion of Chinese goods will be increased from 10% to 25%. On Friday. And potentially another 325. Billion Chinese goods that remain on tax. Could also be taxed at a rate of 25%. Now the president blamed his decision on trade talks and in prime quote who slowly. And for months now the trump administration and trainees have been locked in tough trade negotiations that really haven't. Gone anywhere and they're wise at least a little while a temporary freeze on the tit for tad of Terrence that I've roil global market. But not sweet it really did seem like we were on the verge of a break through. Treasury Secretary Stephen and you Chen and US trade representative Robert light Heiser travels all the way to Beijing for trade talks. When China that they worked well for doc sent. I'm and president trump last month that they hang tiny thing you let her on the verge of a love monuments will be all. I am now even as day present threat led some to believe that these talks might be called up entirely results back seen. Chinese allegation that content to Washington on Wednesday so for now it's a wait and see on what will happen and even as investors are totally stamped. You have Meredith who brought me so much thanks or brave in the vacuum cleaner than the light and power lines and behind and he doesn't and I yeah. Ominous sign of these what's to come needs treetops of that in an officer's don't think Friday deadline ahead Meredith thank you so much. For more and on the economic Arab ramifications of all the so let's bring in economists now Robert Scott. I as a senior economist Jerker trade manufacturing policy at the Economic Policy Institute Robin's great to see you thanks for. Skyping in today you know you Wear it once wrote an op Ed I think about a year ago recent don't sweat the tariffs. It's not gonna be any big deal that they've been in place now for a while the president threatening to ramp a mop. What what do you make of the situation right now. Or. What we've seen is that that is a repeated patent the president as he makes these threats when we're getting to the end stage of the game. Here we're trying to negotiate a review I think the president is trying to force a process forward he really needs a deal would China. To reassure markets that everything's going to be okay and economies concede Camilla continued growth. It's hard to imagine that that's like this help going into a negotiation that may have it wrong and it is that the way it's it to say neverland and the table to go in with. Sir your strongest but follower. I think it's not the diplomatic approach certain not what we've in the past but has something to talk has done for example he threatened repeatedly to work. Impose tariffs on on Mexico to. Oh two was draw from an actor agreements if he didn't get what he wanted out of those negotiations of course they did come to conclusion here about a year ago so. We've seen this before. An end rob you know one of the things that's interest in about this moment as these negotiations come to yet another. A juncture this Friday with this deadline is that you have Republicans and Democrats including Chuck Schumer. Telling the president to stick it to China be top state topped. In fact in the Chinese media today we saw lots of caricatures of president trump like a comic book villain. Over there because the markets have dropped so much there there really feeling the pinch do you think this is. This is is sort of the most leverage the United States has ever happened in a trade negotiation with China and India is this. A good thing at this point that where art right now. We certainly had issues that we had to address there's tremendous amounts of theft of intellectual property. China has been movement manipulating its currency for a close to twenty years now this is just the single most important advantage. And this gives its. Makes everything that exports to the United States artificially cheapened makes our exports to not just to China but the rest of the world. More expensive may need to gain. And is it cost us millions of jobs and this is the first time we've actually take them on in serious way. So I think it's important there were dubious question news music but we're getting get a deal this really worth that are gonna get me real benefits. And if there were to be an all out trade war where the floor just went out. When her US consumers in the and there's a lot of talk that it would may hurt China more but it's hard to imagine a US consumers wouldn't also take a bruise and. I think it's true to consumers would pay the price there already are. In one sense terrorists we're paying Monday Chinese imports are paid museum it day by China by US consumers not by Chinese exporters. I think it's important to be clear route on the other hand China has played its peace in the whole it has lowered the advice of its currency by nearly 10%. Since march of last year when these jurors were imposed. And that has allowed to lower the price it was exports are aimed at the end of the day. Consumers are yet paying that much mourned the arrests are the US is not that big problem. In China on the other hand it is of problem. Time is much more dependent on exports. To the US and rest of the world and we York news about a half over percent of US GDP for total. Exports to China but for China is probably at least. Five to 10% of their total gross domestic partner to much bigger. Risks were to the Chinese economy. And we'll see if the United States can as its president trump would say extract a better deal. From the Chinese in the course of this because of that dynamic right now rob Scott with Economic Policy Institute think he's so much sir for coming in today shifting gears now. Eye to the clash between congressional Democrats and the White House over subpoenas. And specifically involving the attorney general. The United States again in congress say talking about pulling him in contempt let's bring our two. Congressional reporters crack reporters Catherine falters is here fresh offer reporting Ben Siegel is here. Who tracks is Judiciary Committee guys great to see you. So what happened today we saw that Jerry Nadler Ben Siegel the chairman of the House Judiciary Committee threatening to hold the attorney general in contempt. Gets a bit hard if element the that's the crux of it is. The Democrats want the report they want the formal report there were some of them some of that was redacted for various reasons when it first was released the Democrats want to see all of it. The attorney general has let them see it at the Justice Department that's not good enough so now they want the full report and are frustrated that the attorney general is. Not connect to them content and just aren't as responding by saying that they had a chance a look at how slightly less redacted version and turn that down so. Are either sign negotiating in good faith here. On that's a great question and on the of course they would both tell you W. But and stents I think there's there's there's reason that they're both thinking and I think Democrats. It's helping them there's a lot of frustration in the party among members about what was not found in the mall report about how the attorney general. And this White House is dealing with congress and I think this is way to. Two bring them heal they think in for the truck administration. They're frustrated that you know this report is essentially clear the president and you know Democrat crystal haranguing them over to tells and won't even come and see it. So encounter were what's the significance of a contempt citation. For someone like the attorney general for congress to pass it. Not slap bill bar with that and then you know threatened a whole other people contempt maybe even Barbara Mohler doesn't show our Richard. We're talking about us earlier and parsing through these document says this market that they're gonna horn on Wednesday. For her to hold barn content and I think the interesting part of this said and I were finding is that it's. A criminal or from right bands and and that means that. That was referred to the US attorney in Washington DC it. Which is built cars and Justice Department so where is back going to go in the new look alive like the air caught say with air quarter when he was coming to attempt the same thing Obama's Justice Department. So it's politically embarrassing shore. You can view about when it at the same time where will this go will be over a period of years I'm sure if this moves forward after less than it feels like. A ticking time bomb down his back and forth and back and forth is escalating. And dynamic between into a managing Jerry Nadler there in the Judiciary Committee and an AG bar but. Where does it and is it you know years and years and years dragged out records or is there more of a breaking point is earnest closest point. I think I think this is sort of a real life version schoolhouse rock grocery figuring out how what happens if somebody doesn't listen congress when they want information. And what happens when. What can they do and we're learning about the limits of some of those things that we in a written about the history books and I think it's anybody's guess as to where this goes the short answer is probably the courts in some fashion. But we don't know what exactly that looks like and also how long it could take it could take many years and maybe after the president's an office there. Think it's quite do. It is only one he's information on the house Democrats thought they'd like a lot in my tax return of they'd like corporation from the agency and test only from the White House officials saying exactly excellent if it passed and nothing on the board. Biggest figured that they want to hear from is Robert Mueller himself in fact had Republicans do today have no one has heard from Robert Mueller since he is launches investigation two years ago. On captain you've been doing some reporting on this today but generally speaking to decide if Robert Mueller evening shows up in congress. What does that look like this he go willingly what if he doesn't go can they. Compounding the committee yes and there's all sorts of factors here but if Wear and for dealing with is the president right now Robert Mueller who still of the department. A justice and that the committee did you see the Judiciary Committee wants and come before the committee they say they've been negotiating with. Muller is that representatives of course those people are still at justice. Over over data bring him and they say that they want them to him there may fifteenth but that you know we started asking ourselves questions we saw the president's pretty over the weekend. Now wasn't tumor active per sang it said that. He added the president didn't believe them alert should testify now the attorney general has indicated he has no problem with it according to a committee we have heard from eleven according to the committee. They say that he's also indicated a willingness for these are asking ourselves OK this is that the presidents. Huge day. Can he block Moeller from testifying now there's no indication that those conversations are. Happening in any any sense inside the White House right now but but that's the question yeah a whole lot smaller public react how we regard to react real downside to actually out of luck in the west that that's a good question and then you and then an. The question has. OK can you block him while he's an employee of the Department of Justice but then does that still carry when he's a private citizen I don't not. That's why you have some Democrats on the committee member Steve Cohen from Tennessee last week abrupt fried chicken promptly. Gary he wants he's called for motor resigned from the Justice Department so they can come freely as a private citizen but I think and wanting to keep in mind. But we talk about the president and what he tweets and lay says of people and anything from reading the mullah report about this administration it's that just because the president says something doesn't necessarily always make it. So that's right finalists officials here is exactly what. And also I think the latest we've heard from. A bill Barr is that he has no objection to Mueller testifying in and we have an argument since the president's tweet so event fellas position today it is an angry and Brenda knows just wants to loosen policy as we march for the fifteenth which is the date that's been floated about finally though in this segment we do need to just. Pay known of one of their milestone in this incredible saga of the past two years in a president's. For personal attorney Michael Coen reported to prison in New York State notice though. I penitentiary Catherine I used banned they're doing some reporting on him we saw he held a press conference right outside his home before. Being driven up three years behind bars for lying to congress among other things. Seattle lying to congress and hard campaign finance violations and consumer they're talking before. Reporting to tell it's just important to remember that those food that the president's longtime attorney for over ten years who once. So I think he'd take a bullet for the president now he is he's heading to jail for for lying to congress and campaign finance violations and right there and that press conference he said that he hopes when he gets out of jail. That the country will be in a place without xenophobia and justice and lies at the Helm of our country essentially saying I'm a man who he represented for ten years any take a vote for. He hopes that he's not an office when he gets and that we. His escalade pulling up there just if you're watching the video two Otis and no penitentiary where he will be spending his time. For three years want to. I can't say that it's also. And interesting timing that just last week the speaker of the house accusatory in general of lying to congress now we are watching. Matt Cullen go to prison for among thanks lying to congress. Captain Paul there's been Siegel thank you both very much for that shifting gears yet again to a dramatic show of force overnight. Quite a lot of people by surprise the White House announcing that they were deployed a carrier strike group. And bomber task force to the Middle East to respond to what the national security advisor described or else is troubling Mascoll Torre indications and warnings. From Iran this coming on the one year anniversary of president from pulling out of the Iran nuclear deal. And it's hard to see whether or not hard to imagine that Iran would not interpret this movement US as being excellent story. Themselves and over is that deliberate and he didn't come out rank and solo sailor. Tolling we're learning center locator now a minute let's bring in our pentagon reportedly Martinez to help you can't let that actually means because Lillie. This was a bit of a starter overnight and it took you some time due to track officials down get some reporting on what was going on here in this. This strike group was already headed there but there was in fact some real danger to our to our troops. Now that's right and real danger is what it was being caught on US intelligence. We're told US officials that sometime on Friday there was threat streams as the column. That were emerging from the Middle East particularly about Iran where their proxy careers here Hezbollah. Or someone who he's in Yemen. Against targeting a US facilities on US military personnel either on land. In Iraq and Syria or at C. I know we we have various US navy ships that are off their coast in the Middle East region at any given time. I'm and so the US Central Command commander general I'm MacKenzie. He drew up plans to. I'll push forward this carrier from the middle from the Mediterranean. Where he had just arrived and to push it into the Middle East. Waters om and also to send a bomber task force that request was approved by the acting secretary as Patrick Shanahan. I'm and then they drew up a statement and what we understand is at that statement was actually read it was written to me. By general just have done for the chairman of the Joint Chiefs of Staff and was ultimately released. I'm by Andrea ambassador John Bolton was a national security advisor. And in you talked about that statement right very strong language at the United States doesn't want war with Iran but that it's going to protect its interests whether it's attacked by Iran. Or any and its proxies but a very stunning development because we weren't seeing this at all I'm merging a weekend but obviously this was top line focus. For the US military over the weekend. You know as for crusty guinier into this it's our lucky day Stevens around Shari Gregg trotting around the world. Meeting with our allies to Steve great to see you glad we got lucky with you this afternoon way give us your elevator and analysis here of how dangerous the situation is can we be headed toward all conflict with Iran. That donate I think it's it's prudent. Now I'm a little suspicious of the the what intelligence drove this apparently there's. And acts his article out that I think is a bit over written that talks about. Them aside visiting the White House the couple weeks ago and drawing up some scenarios on how Iran might. Might retaliate against the United States and in the Persian gulf. So Luis Gottesman additional information there that they were hearing some things over the weekend. That obviously diplomatic facilities throughout they have their region are soft spots. And the Iranians would not be stupid enough to directly attack the US with a running military forces but they would use. They're cut outs their surrogates the energy see that could force. They'd make it look like it was a terrorist attack find some sort of plausible deny ability and and secretary Bob Palin and now on this roll nurse saying. We see through that and now we're gonna move significant force in the region because we believe if anything happens to any United States. Military or diplomatic personnel that we think it'll grade B directly. And attributed to Tehran and so moving a bomber task force and this is. Catching a little bit out of the rotation but there's normally bombers deployed to the region. The K there's normally carrier in the region so they'll just move things up and and they're making a statement and and should come out loud and clear to the Iranians. Do think that any other players in the region beyond Iran might respond to this kind of movement everything. Well the Iranians are fairly well isolated the only country in the Persian gulf that that did. Will even talk to in this gutter. In and perhaps Oman but the saudis the emirates this. Bahraini side of the kuwaitis are all sort of on the other side figuratively and literally and the US. Can expect if not direct support me in any kind of a of a shooting. Incident they would expect base support and things like that so it's quite useful that the United States is now. Allied itself with most of the Persian gulf and it gives us opportunities that we didn't have. Just a few years ago. And Louie what what was so fast say about this movement to me also was the fact that it comes on the heels of two other. On the escalation is if you will ask that's the word of the day the United States are just a short time although obviously. Declared Iran's military a terrorist organization we know that they. Crack down on those sanctions for Iran's oil sales and distribution Ameen. Doesn't every there's there come a point win. All of these things together pushes Iran to a tipping point could we be making this more dangerous than admit maybe needs to be. Well there's no doubt that does this scenario that you laid out of actually increased the pressure on Iran. We know that the economic situation in Iran is pretty bad right now. We know that that the sanctions are having some effect. And like naming the IR GC the Islamic revolutionary guard corps. As a terrorist organization is a big step. I'm but it also lit the retaliatory step on the part of the Iranians they're calling the united states military in the region a terrorist organization as well. So I can't write and real ramping up the rhetoric. Which could be par for the course but you're right I mean having us this kind of scenario play out. Where you now have gone quote gunboat diplomacy actually taking place could come at a tense time in and when you have let's say. People under tense situations and government leaders and tense situations they can be kinda difficult to predict exactly how they're going to react. But I think in this sense of the mission here is that would be United States wants to send a message to Iran particularly its leaders particularly that. The Inergy C and is could force which just act independently sometimes. This is that the leadership and the political leadership inside Iran. And so I think that's where the message is truly intended but again since those guys act as independent players sometimes it can be very difficult to predict. How they're gonna react to something like this and I think. That unpredictability. Is something that US officials are concerned about especially if they're sending such a large force into the area. And I definitely worth keeping an eye and Louis Renault you won't do that for us from the Pentagon we Martinez thank you Steve get injured. ABC news contrary are also allegedly has Steve think he's so much shifting gears under troubling new report. On the global human impact on our climate. An animal species the ripple effects quite something this UN report out just in the past day or so is the most comprehensive look we're told. A human impact on. The on species on the world look at this though the top line finding its grabbing everyone's attention today is that. In just a few decades up to one million animal and plant species or risk of extinction in part because of climate change and other. I human impacts and for more on this I want to bring in our friend and neighbor here doctrine wreaks a lot. Up from the National Geographic society's the National Geographic Explorer in residence obviously great to see you. Physical pain and it's a per vertical title also while we've got some pictures that we can show folks as well from your work preserving notions and in marine life. What a start though we're just asking you about this report in what's new here but what your big take away from this UN study. These report comes right time because. We already know that we have destroying the natural world of an unprecedented rate right but we still have to kind lacked. And people tend to see climate change and once Diallo might adversity nature and other asylum ocean's food production and war but it's all the same. The earth is so one large living system and everything is connected. And what these reports shows is that we have to stop these trying our life support system. And there's a big connection between this mass extinction risk for mass extinction. And protecting the oceans for seeing a lot of reports that amount aluminum bat and adversity in the oceans and a lot of the extinction taking place. There talk to us about what lawmakers and foreign officials are doing to start addressing to start addressing exactly that in. And what do you think they should be right now only 5% of the ocean and 15% of the land these protected and protect its eightieth national parks. And the science is telling us and we need half of the planet he natural state. And 30% of the planet can put the good idiots like when he thirty. Otherwise. The natural world the ocean the forests grasslands will not be able to provide the oxygen we need. Before doing it the clean water we need to survive pass easily half of apply the natural state and the milestone is 30%. A third about a third of the planet's land and ocean including its areas right when he thirty. Wow let's forget Joseph Joseph Walton into this conversation he's vice president feel conservation programs the Wildlife Conservation Society. Pick up right where doctor salaam was leaving off their joke. You work and preserving and creating these wildlife refuges in and national parks in the light. How do we do that how does the world come together to preserve 50%. Of earth and and natural state. Only the good seasons and he says is that this is entirely also was of the world's. This report actually is and a whirlpool who's. Just by the policies such as this were cool that's out there is a world order of governments. NASA says governments which have the responsibility now take on this evidence to be able to make larger commitments. Are around Asia and it's actually. Not that difficult winter it's a huge it's. It's a challenge it faces a house men and the next few years. But one actually if we get together its entire unit impossible to be able to not just stem the declines when she saw fruitless them. And we have a credible to us as an access the the connection between biodiversity and climate change is a very obvious profound wrong. And you don't even have to worry it won't be that passionate about wildlife species likeness or Rio. You gonna go to look to the fact that insurance companies that people central banks of the world and now raising the the Flacco. I'm a listing costs of the fact that bases its threat to a lot of us he's undermining our economic systems aren't helpful systems don't want to supply of food security. And a sites that require us now you nineties government response. Joseph can you break that down one more level for us images to help underscore that help people understand so. You know this isn't just city nature for nature sake if you will what you're talking about economic systems like what in practical terms what does that mean if someone. Doesn't consider themselves an environmentalist but what what's the argument that you make that we do need to be preserving these things is the real human impact is there. She'll lupus. And I think Houston is sick is to get clear is that this connect deep connection between biodiversity conservation and climate change. There is not new replete response to climate change that does not involved the protection and security of biodiversity. And the more we grieve with every top down my grows we we removed -- makes us from the system. Then them always damaging the one the most obvious the cheapest and most effective natural response to climate change which on natural forests grasslands coral reefs. SEC crosses and I'll. I'm natural systems easy ecosystems. They will if left protected if unadulterated by by humans they will actually regenerate inform the best offenses against what we're seeing not just. I asked for instance coastal defenses round where I live in new York New Jersey. So deeply threatened again by him this findings we see you all across the world now people in rich countries in all countries. I'm being get affected because vitamin C is no longer able to protect us in the face luggage so that's the first one. That the second one is morally. It's morally. The systemic breakdown of what's happening. Again you know we we failed ultimately realized some of the basic things you know we really apples here in the US 90% of them are pollinated by beat by bees here. Brown eyes and blueberries cherries all often products. They're still however much we manufacturers do deeply reliance on biodiversity. And we've always assume that they ended be there. And and those systems are seeing through this report are now collapsing. And those. And when he stops you know food systems and a car you don't want assistance. And that's when we really goes so far in Gaza Gaza as a blow Ronald criticism of Antoine consulate sometimes. Eureka I ask you in your experience are there certain species that you're basically worried about or read this report certain skis that you think could disappear quickly with without them. World's attention. While we have already lost 90%. Of the large fish in the ocean like the group person whom that are percent 90% I love fishing or. Am I but I don't is not just the speeches of we know about. A sing about oxygen half of the oxygen we breathe is produced by microbes in the ocean. It was six systems within knowing the undercut the years ago you know and we're talking about the party's climate agreement. And their clock climate goals you won't be possible. Put to them as as long as we continue cutting forests forests and grasslands and wetlands home box. These are the machine is that cut short much of the CO2 of expelling the on the field we conclude that. Now if we had the capacity to produce all the oxygen that this in the hemisphere that is produced by Mike of some plants. You cost us 16100. Times the global GDP. I mean we cannot replace when nature and. As for us for free so not a lot we need to pay attention to director wreaks a lot at National Geographic export National Geographic now part of the Disney family so great to see you were also neighbors share Washington DC thanks so much thank you to her coming over really appreciated and also our thanks to Joseph. To Joseph Walton now with you about conservation side appreciate him as well. Finally today a little bit of a lighter note just to kick off with they hear the president is about to award the medal of freedom the highest civilian honor in this country did Tiger Woods. We have established share in the briefing room and Mary Alice parks is in steam golfer. Dealing solving skills. He is someone who deserves the honor merry Allison dies it's closely watch he's getting a solo presentation today. He's inclined think he honestly has made history and I think well dessert. He will be getting the solo treatment. Coming up shortly at the White House and can watch it live here and ABC news live. Hope to see you back here tomorrow at 3:30 eastern time every for every ten Mary Alice is always on Devin Dwyer Washington. See that.
This transcript has been automatically generated and may not be 100% accurate.