retaliate specifically with u.s. exports to china. that's the major fear right now. this could lead to a major trade war. >> yeah, i have no doubt there is going to be retaliation. i'm sure the chinese are going to target important and iconic u.s. brands. there's already been discussions of that. the big fear, of course, is that this is just the beginning of a more global trade war. you know, we've already heard trans-atlantic fighting europ n europeans if they get involved. trade wars don't have winners. the president said trade wars are easy to win. they don't have winners. trade wars were prolonged in the last 20 years. you see u.s. jobs, u.s. companies be losers. i'm already fielding concerns and complaints from a number of ceos, industry groups, about the president's action. >> stephen moore, what do you think about the president's announcement that this is the first of many. it looks like there could be a major trade war which would result in enormous implications for the united states and higher prices for american consumers

for a lot of profits. >> so i'm of two minds on this. i'm a free trade guy so i don't like to see trade barriers rising and that certainly is happening under trump. and that will have negative implications for u.s. consumers, you're right about that, wolf. >> chinese exports to the united states, whether gu you go to a walmart, you go to another store, families want to buy clothes for their kids, books for their kids, other products. the costs for those will go up. this is like a hidden tax when you impose tariffs like that. >> that's all true. let me say this. i was with donald trump on the campaign, and this is exactly what he said he was going to do. if you think of a more conventional tariff on trade, hillary clinton would be president right now. this position is actually popular with a lot of republican voters, especially those industrial states that feel like their jobs have been taken because of trade with mexico and china and other countries. the other thing -- the other

thing that is important here is this issue of intellectual property. this is a big deal for the united states. i think the president is right about this. as we advance as a nation, more and more of what we produce is intellectual property. >> you're pointing out to our viewers that china steals u.s. intellectual property, and this is the way the president is responding, by imposing tariffs? is that what you're saying? >> exactly. the question is whether or not -- i don't know the answer to this, but i think this is the question. can we have free and fair trade wth a country that is stealing $500 billion from us every year? >> that's the trade surplus with china. >> that's how much it's estimated that china is stealing from us. that comes from a report that just came out not long ago, a couple weeks ago, from a very credible -- >> from a u.s. government report? >> i'll look it up, but people with citing it as one of the definitive studies of how much is being stolen. >> the president did, gloria, as a candidate repeatedly go after

china, the europeans, the north american free trade agreement with canada and mexico, other countries that have trade surpluses with the united states. now his argument is i'm delivering what i campaigned on. >> and the question is, will the impact of this wipeout, the positive impact of his tax cuts -- >> the stock market today. >> exactly, the stock market today. and they're saying, we told you we're going to put more money in your pocket and now we're taking money out of your pocket. that's the problem. >> the argument now is the fear is the chinese will.i. impose tariffs on other exports, whether it be soybeans or corn. a lot of meat-related products. that will hit a lot of agriculture and farming states, kansas, nebraska, iowa, states like that. their lawmakers are not happy and they're mostly republicans,

with what the president is doing out of fear this is going to cost american farmers a lot of money. >> absolutely. i mean, you're seeing agricultural trade industries already coming out and complaining about these tariffs. you're hitting the nail on the head. tariffs are something a lot of republicans oppose. most republicans are free traders. the thing that really concerns me, this isn't a sexy point to make, but china -- yes, china steals intellectual property, absolutely. the president himself is right on that. but china also has been doing a lot in the last 20 years to enrich its own subpoena lie chain, its own ecosystem. we should have been doing all of that stuff all along as well. i would like to see the president talking more about how to bolster the rust belt instead of slapping on tariffs that will end up hurting his base. >> people think this is not

going to help the global markets. >> we did something to improve our local market, which was the tax cut. >> which is going to be wiped out if we have a trade war. >> i think one point to think about, and this is part of, wolf, i think, this new trump trade doctrine, if you will. i think china is playing a very dangerous game here as well. trump understands, and i think this is an unquestionable truth, that china needs to trade with the united states more than we need to trade with them. you're right, if we can't trade with china, we have to pay more for toothpaste and maybe $20 more per cell phone. so they need access, in my opinion, to america's $3 trillion consumer market. if this becomes a tit for tat, and this is where i think trump doesn't say exactly what he means. when he said we can win a trade war, i think he was saying china has more to lose here, so they better cooperate with us. >> it looks like they'll retaliate, and that could have

enormous. >> nobody has answered the question yet about how do we go forward if they continue to steal? >> what do you think if the chinese continue this intellectual property theft? what should the u.s. do about it short of a trade war? >> for starters, china has already announced its intention in its five-year plan to be independent of u.s. technology in the next 10 years or so. that's a goal that they're actually moving forward. i spend a lot of time talking to chinese entrepreneurs. i am in no way saying their model is the correct one, but they are doing a lot to support local players, to support their local tech ecosystem. we should be doing more of that. i also would like to see us talking to europe and getting in alignment for how they treat china. it would be much better to start

a unilateral trade war. >> there was a split among the president's economic advisers whether to go into this fear of a trade war by imposing tariffs on steel and aluminum imports into the united states, and now $60 billion on tariffs. it was originally thought it would be 50. some ald vdvisers recommended 3. now the president says $60 billion. jerry cohn doesn't thing it's a good idea. >> over the last week or so we have the president's attitude of, i can do this. i'm not going to rely on these

people anymore to tell me what they think. i'm not going to have anyone in my white house who is going to stop me. so while larry kudlow disagreed with him, i was told by a source that kudlow won't quit. and he won't. but it with cohn gone, i don't w who is going to argue this. kudlow might. >> one of the reassuring things of having larry over there now is he will be a voice for free markets and free trade. i've talked to him a lot about this. he does think maybe getting china is the right time for that. china is so far behind us technologically, all china does

is copy us. >> i'm going to push back strong on that. >> what have they ever produced that hasn't been a copycat technology? >> there are more people engaging in digital commerce in china than the u.s. the chinese are actually very well poised in certain strategic areas, artificial intelligence, et cetera. lots of reasons for that, but it is very important for us to actually develop our own technologies, our own supply chains rather than just getting into a trade war. and i haven't seen the president doing enough of that. and also policy has been totally incoherent. we're protecting -- we're saying, okay, broadcomm, you can't come in and buy qualcomm, yet we're letting technical companies do plenty of business in china. >> if we're going to have $60 billion cut in tariffs, that's a pretty significant wallop.

>> the president says that's first of many. he mentioned japan, the european union. he mentioned the free trade agreement. he said the wto is a disaster for the united states. very strong words from the president. and he says china better reduce that trade deficit by $100 billion and they better do it quickly, otherwise more are on the way. >> they're going to have to buy more of our stuff, not less of our stuff. >> let's see what happens. it's a very sensitive moment. look at the dow jones, it's down almost 400 points right now. as we've been speaking, the house of representatives have passed what's called an omnibus spending bill to keep the votes open to the senate. you see the vote there that just passed, the legislation just passed democrats and republicans voting for this compromise. there is much more news right now. and we have breaking news.

president trump's lead lawyer handling the russia investigation has now resigned, adding to the legal drama playing out among his personal attorneys. john dowd's departure comes as the president has stepped up his attacks against the special counsel robert mueller. it also comes right in the middle of negotiations over whether the president will actually sit down for an interview with robert mueller. another of the president's lawyers, jay sekulow, issued this statement. quote, john dowd is a friend and has been a valuable member of our legal team. we will continue our ongoing representation of the president and our cooperation with the office of special counsel. let's bring in our cnn senior white house correspondent jeff zeleny. jeff, the president just told you everything very significant. tell our viewers what he said. >> he did, indeed, wolf. t the. a short time ago, wement.

we asked the president if he would like to testify before special counsel robert mueller. he said weeks ago that he's excited about the. he said, i would like to -- i would like to --. speckly he was asked if this represents a new strategy and he did not answer. the president, in his view, was standing just about two feet from me, looking me directly in the eyes, and he said, yes, i would like to. we will see if thiz lawyers agree with that. he is indeed changing up his legal strategy, as we've seen, wolf. but at this moment, the president from his point of view would still like to testify. again, we have seen the outlines of the subject matters of what the special counsel is interested in.

our pamela brand and gloria borger is testifying exactly what the support looking for. he said "i would like to" about testifying in front of mueller. >> we'll see if his lawyers think it's a good idea to actually sit down with robert mueller. why did john dowd decide to quit? >> i talked to many sources about this who are familiar with what's going on inside the legal team to the legal team. >> a former u.s. attorney who been outspoken in alleging that there is a. >>. >> he just didn't want tobacco-counsel with him. he felt he was driving from the

president the. you'll recall that he tweeted over the weekend saying that the mueller investigation should end. ment that was at the urging of the president of the united states, our saifl. there is consternation inside the rest of the legal time, i'm told, at the way dowd handled thmd. now they're left with a main point. they have been in those meergts. >> it is a problem for his legal team. >> he is. i'm going to go to secretary of state now that he has been fired. that is the work of the department on behalf of the

american people. ma from the mailroom, to the sernt floor and all points in between. and all of our missions abroad. our locally appointed staff and our efms, eligible family members, to our investors in our chief mission. everyone is important in the state department. in terms of the transition, i conducted all the policy decks that were developed by you and your colleagues. they were first the basis of discussion at the national security counsel, and ultimately with the president. these decks of which i counted 13 since february 1st of 2017 provide not only the policy basis but the strategies and tactics which guide the department's execution against

those policies. it also provided the secretary-designate recent decks which are under development to provide updates about how tactics may have other circumstances. while the policies and the strategies should never change, we're reviewing the tactics on t the. flexing, foreign affairs. your continued diligence and devotion to the state department's mission has never been more necessary. as you go bm. as we go through your individual responsibilities as well your collect ty duty, it is my hope you will be guided by and test your actions each day against

the values we have, the safety and security of yourselves, your loved ones and your colleagues. second, to maintain a commitment to accountability by first holding yourselves accountable so that you're able to hold. and that the positive environment. never lose sight of your most valuable asset you possess, your personal integrity. not one of you was gifted with it. you were born with it. it belongs to you and you alone. only you can relinquish it or allow it to be compromised.

once you've done so, it is very, very hard to regain it, soga gud it as the most precious thing you possess. and finally, i hope you continue to treat each other with respect. regardless of the job title, the station in life or your role, everyone is important to the state department. we're all just human beings trying to do our part. in closing, i would like to ask that each of you work to ensure one other act of kindness each day toward another person. this can be a very mean-spirited town. [ applause ] >> but you don't have to choose to participate in that.

[ applause ] >> each of us gets to choose the person we want to be, the way we want to be treated and the way we want to treat others. god bless you all, loved ones. god bless america. >> rex tillerson, the outgoing secretary of state. his final words at the state department. strong words, indeed, especially at the very end when he said plaintively that this can be a mean-spirited town. he was applauded and then said, but you can choose not to participate in that. clearly the way he was treated by the president of the united states, the president didn't

invite him in for a one-on-one meeting, didn't even call him on the phone to tell him he was being let go. he simply tweeted it wasove ove and then it was over. our state correspondent is over at the state department. it was not very subtle, those final words at the very end about this being a very mean-spirited town. >> not at all, wolf. and when he said each of us gets to choose how we participate this that, rex tillerson made a choice very early on that he was not going to play donald trump's game in terms of the taunts, in terms of getting fired. you remember that i sat down with him earlier this year and he said that he was going to stay through the year. that was a message to president trump. his aides told me, if you want me to go, call me in ask fire me like a man. that didn't happen.

as a secretary, everybody knows they h he had a very frought relationship with this department. there were questions about his leadership, some of his policies and not defending the staff budget in terms of the white house wanting to cut 30% of the budget. but in the end, rex tillerson has a lot of sympathy for the way president trump treated him, and i think he's going out -- i think when he talks about integrity, you always have your integrity, that's what people are saluting here right now. he did not have the accountability that he talked about. i thought there were a lot of contradictions in his remarks. he talks about accountability. he never thought that he did anything wrong, wolf. he always defended the way that his leadership -- he never really saw that he had a problem with the state department rank and file. but in the end, what was more important to rex tillerson, was his integrity and going out wow

any bitterness, without any meanness. he's going out like a gentleman. certainly he has some bitterness about how he was treated, wolf. >> john, what do you think? >> i think she is right. he certainly is getting a lot of sympathy, and rightly so, by the way he was let go. no question about that at all. he won't go down as one of our best chief diplomats. didn't get the respect he needed to really get the job done. and he didn't really stand up for the career foreign service. we've seen them leave almost in droves. he didn't fight for the budget, so it wasn't a real strong institutional patriarch leader in that offense.

i feel bad for the way he was let go. completely abominable. >> he's getting a nice round of applause. whether he did a good job as secretary of state, whether he did a bad job as secretary of state, whether he agreed with the president, disagreed with the president, he certainly deserved a more cordial sendoff by the president instead of finding out about it in a tweet. that's what the president did and there's clearly a lot of anger at the state department over the president. also just quitting a little while ago over disagreements with the president. now the president says he wants to testify, says he's ready to testify. i would like to, i would like.

plus, the other breaking story, the dow tank lg right now after the s frk. this sparked a major trade war which are tracked u.s. imports. the evolution of cancer care is here. learn more at cancercenter.com/experts directv gives you more for your thing. your top-rated thing. that five stars, two thumbs up, 12-out-of-10, would recommend thing. because if you only want the best thing, you get the #1 thing. directv is rated #1 in customer satisfaction over cable. switch now and get a $200 reward card. more for your thing. that's our thing.

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talk to your doctor about xarelto®. there's more to know. more on the breaking news right now. president trump's lead lawyer, john dowd, has just quit. let's get more analysis on the breaking news. gloria, reset the scene for us. i know you've been talking to john dowd, you've been talking to others close to the president. this is a significant moment because john dowd was the point person between the president's legal team and robert mueller, the special counsel. >> right. i e-mailed with john dowd who said to me, quote, i love the president and wish him well. i think that's all true. they had a great relationship until recently.

the president has been hammering dowd who has led the legal team because he feels that he was misled, that his legal team was telling him hold your fire, this is going to be over, whether it was thanksgiving and then it was christmas and then it was early in the new year, et cetera. they got an indication from mueller as they were trying to negotiate over the president's testimony about where mueller was going in his questions. it's very clear it's not over. the president, who originally wanted to push back, as did his initial attorneys, mark casowitz, sat back, took the legal advice of john dowd, and now is thinking it didn't work. that he was misled or they didn't represent him well, one or the other. so dowd has been hammered by the president, and then they brought on joe digenova. he was not happy with being co-counsel to joe digenova.

the rest of the legal team, i would say, is quite upset at wait dowd resigned, because it kind of leaves them without a lead attorney and negotiations that they're smack-dab in the middle of. so dowd, i think, felt that he could no longer represent the president because he felt his advice was being ignored. and now i asked somebody familiar with what's going on inside the legal team, so who is running the legal strategy now? and this person said to me, the president. >> i'm not surprised by that. laura coates, you're a legal analyst. at this sensitive moment in a case like this where the lead attorney for the president of the united states quit, there must have been something that so upset john dowd that he said, i can no longer work for you. >> it seems so. it's highly imprudent to do so.

you don't want to not have a captain on your ship when you're in stormy seas or when you're being presented with a bob mueller interview. it's also the idea of -- remember that dowd is initially the one that was promoting this theory that the president of the united states cannot be ever indicted into office or have obstruction of justice ever be charged against him. that's a very different charge than the one who said they never committed obstruction of justice or was worthy of indictment while in office. i think that at the onset was one of the major problems. the president of the united states wanted to have an attack dog, one, and also one that was outwardly public and did nothing wrong. it is never going to be the answer to satisfy someone with that objective.

>> wolf, i don't think you have one single thing. maybe it's joe digenova on board. last week you had john dowd tweeting that at the urging of the president, the mueller investigation needed to end. this is something digenova would not be doing on his own because he would be negotiating with mueller. the president was upset. they got. your strategy isn't working. they bring in a new attorney to be his co-counsel. you put all of these things together, and i think at a certain point, dowd just threw up his hands. >> he's made mistakes. remember, it was him who made the comment about michael flynn being fired because he lied to the fbi as well as the vice president, mike pence, in a tweet. later he walked back to say, wait, i didn't actually mean the president knew anything about the fbi lie at that point in time. he doesn't have the cleanest of hands, but certainly he was someone relied on in this

investigation. >> stephen, i wanted you to weigh in as well because you worked with the president during the campaign. you know the president. even though you're an economic analyst, you could give us an appreciation. john dowd, the lead attorney, a all of a sudden the president says, joe digenova, well known to a lot of us, is coming in as co-counsel. ted olson, they went to him. he declined to come over. if you're john dowd, you have to draw some conclusions that maybe they don't think i'm doing a good job. >> i think the bigger story is one trump said a few mipts ago,. >> to me, as someone who is is watchi watching. i want to see him touch this.

i believe him when he says there was no collusion. were there areas of bad and poor judgment? yes, probably. but was there illegality? i don't think so. i don't see this coming to an end until trump steps forward and testifies. but there would be conditions if you're trump. if i were his lawyer, i would say, we have to have a date certain that this ends. this can't go on forever. >> and trump does want to testify. john dowd did not want him to testify. his lawyers don't want him to testify. >> that's typical, though, isn't it? >> -- as ty cobb famously said. so what they're trying to do is thread the needle now, get it down to such a limited amount that you can just fit it through that needle -- >> that's their legal strategy, right? >> yes.

b but, you come up with dozens of questions, pamela brown and i, and then you get into dangerous testimony where you shouldn't testify and consistency is your best friend when you talk about somebody up against a team of lawyers who has had a career, and a well-respected one. not a perjury trap but have been investigating things in a comprehensive fashion. be careful what you wish for. by answering questions it may not cap the conclusion of the investigation you would like to see. john dowd has been the person holding trump accountable. >> there are going to have to be guard rails there. >> the president repeatedly said he wants to testify. he said today, i would like to,

i would like to, but then he always cautions, i have to talk to my lawyers. let's see what the lawyers say. >> they are trying to bring in more lawyers in. in washington of all places, it's hard for them to find a lawyer. and the reason it's hard for them to find a lawyer in washington is that law firms are c conflicted because so many law firms are involved with this. or lawyers don't want to take it because donald trump, let's face it, is a very difficult client. >> judge jennivas is in the area and very well known. we're going to get recollection. her reaction to the

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comparable bundle, for less. call today. . the close of the russia investigation, the majority of the house intelligence committee voted to end the entire probe. in their report they said they found no evidence of collusion between the trump campaign and russia. joining us from the hill, california congressman jackie speier. she's a democrat on the house intelligence committee. jackie, thank you for joining us. >> my pleasure. thank you. >> i'm going to get to a lot of them in a moment, but let me get your quick reaction to the shocker in the white house, the sudden resignation for the lead attorney in the russian probe, john dowd. what's your reaction when you heard that about this major shake-up going on among the

president's personal attorneys? >> that's the only thing the president seems capable of doing effectively is shaking up those who are representing his interests. i think if an attorney with any professional integrity would be loathe to join his team now, because they become a punching bag for him, and unless they can wave a magic wand and reduce the mueller investigation, he doesn't think that they are serving his interests. i think it's really disturbing. >> i was going to say john dowd was the point person dealing with the trump legal team and robert mueller, the special counsel and his team. so what happens now, do you think? >> i think he has hired new staff, new attorneys and they'll have their chance to wave their magic wand, and when they're not successful, he'll fire them, too. >> let's get to the vote. a very important vote. your committee, the house intelligence committee, today.

what do you think of the decision by the republican majority so shut down the house intelligence committee investigation and go ahead with issuing a majority report? >> you know, wolf, i think this will go down in the history of the house of representatives as an assault, the greatest assault on the independence of a house ever. and i am convinced that this has been orchestrated by the white house from the white house, and it reflects rk, i think, just a very low point. we have not come to the conclusion based on evidence, we've come to the conclusion -- i should speak up for the majority here -- based on a script that the president had distributed. i would also say that it's not over because the minority is going to continue to investigate, and in fact, we're in the process right now of having the whistle blower from cambridge analytica come in and testify when we return. >> the argument they're making

is they expect more than a year, year and a half, whatever it's been, going through witnesses and all evidence. the republican majority says they've found no, quote, collusion between the trump campaign and the russians. do you think they just don't want to waste taxpayers' money and keep this thing going on and on and on? >> that's quite ironic when they spent over three years on investigation in benghazi. they didn't seem to be concerned then. this is about security for our country, this is about russian intervention. this is not some small thing. we could have people come in who make the election machines, have them commit to us that they are fail-safe. i don't think we have machines that are being used right now in this country that meet a standard that can't be hacked

into. so i think there are many things to discuss and inquire about. we had more than 30 witnesses, and as we found out this week, cambridge analytica had a relationship with a professor who was also a professor at st. petersburg. it was the basis ol which had he started profiling all roads lead to russia, and that's the problem. you have members of trump's campaign team who have been indicted and a number of them who have pleaded guilty. how can we say somehow this is complete? >> let me get your reaction to another sensitive issue that has now come up over the past several days. the lawsuits against the president, three of them brought by two women who say they entered a. she was sexually harassed when she was on his show, "the

apprentice." what's your reaction? what do you sense is going on with these lawsuits and there may be more women coming out with legal battles against the president as well? >> wolf, i believe the women. and i think that these lawsuits are going to move forward, and for once, president president is not able to just lose his. women are standing up for themselves, and i highly doubt they're lying. inc. he's i think he's a sexual predator and we should call him out for that. >> let's listen to former vice president joe biden calling him out for these allegations. >> a guy who ended up becoming our national leader said, i can

grab a woman anywhere and i said, no, you can't. >> he said, if we were in high school i would take him behind the gym and beat the hell out of him. today the president responded on twitter, saying this, quote, crazy joe biden is trying to act like a tough guy. actually, he is weak, both mentally and physically. he doesn't know me but he would go down fast and hard, crying all the way. what's your reaction to this exchange by the former vice president and the current president? >> i think that the president is exhibiting more indications that he is a malignant narcissist, and the antisocial behavior that he gets much glee just from tearing people down, why can't he say that putin is weak? why can't he say that putin has done horrific things to the

woman that were formally russian spies and citizens? why can't he speak up against the biggest adversary we have in the world. >> do you have any evidence what john brennan said, the former c iri a director said, that he might have something on the former fbi director and he would never criticize putin? >> the fact that there has been just willful blindness by trump and the trump organization and doing business with so many russians and laundering money into the united states in violation of a number of our laws would suggest that he knows that the russians have something on him. but we're not at the point where we can say that, nor is that under the jurisdiction of our committee speckifically.

the relationships he's had with russians and russians who have purchased real estate come under our jurisdiction, but the majority on the committee was not interested in pursuing that. >> the majority of the committee has decided to wrap up the house intelligence committee investigation. congressman jackie speier, thank you so much for joining us. >> thank you for having me. more breaking news coming out from the attorney for the porn star suing trump, now asking the trump organization to preserve all documents relating to the case. we'll get our legal analyst to assess what is going on when we come back. your getting the low-light, just right thing. ♪ introducing the samsung galaxy s9 with low light camera. now 50% off. more for your thing. that's our thing.

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breaking news. stormy daniels attorney asks for documents. the torn intends to serve a subpoena to the company unmistakable links between the trump organization and the defendants in the lawsuit. our legal analyst is back with u us. >> this is really standard to have preservation of evidence. he's preparing for discovery, exchange of information about all the things that may come up in the lawsuit. remember, it may be in federal court. federal discovery rules allow for much of this. the most important things to take from this request are two-fold. number one, the trump organization, of course, sk asked because michael cohen wrote an e-mail from his trump.org account, suggesting that perhaps the trump organization was involved in some way and also jill martin, assistant general counsel of the trump organization also -- >> on the west coast? >> on the west coast. her office is on one of the golf

courses, that michael avenatto said was secreted and did not give his client a fair shake. also, reported a long time ago that the first republic bank of that $130,000 filed a suspicious activity report, which meant that they thought it was odd there was a transaction going on like this. all these things combined to say it's already out in the public eye. we want you to preserve it. please do not try to destroy it or proactively do something where we can't get the information. be careful what you wish for, federal discovery rules are pretty impressive for a plaintiff or defendant. >> the legal battle is intensifying. >> it's intensifying. as she said in her tweet, i'm sure she's not going anywhere. >> thank you so much, laura, for that analysis. coming up, the president's lead lawyer in the russia probe, john dowd, has just resigned. what we're learning about the circumstances around this major development. much more of our special coverage after this.

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hi, there. i'm brooke baldwin. we've got breaking news for you this hour in the russia investigation and what could be the major setback for the president. his lead lawyer, john dowd, has just quit. this is a possible signal of a change of strategy on how the president will deal with special counsel bob mueller, who has been talking to do wd and the other trump lawyers about conducting an interview with the president. moments ago the president repeated that, yes, he would, indeed, like to still talk to the special counsel. listen