thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com welcome back to "inside politics." i'm john king. thank you for sharing your day with us. the trump trade war escalates, global markets struggle, and the president suggests he's ready to expand the fight with china and with europe. plus it is interview time for the president's supreme court finalists. he promises a pick one week from today. he's trying to navigate election year pressures in an evenly

divided senate. and a credibility gap. the president says the crisis is over and a top aid says the nukes could be dismantled in a year. but new findings say kim jong-un is telling the president one thing and doing another. >> if it is true, they're saying one thing and doing another, nobody should be surprised. but here's what i would tell north korea. there's no place for donald trump to kick the can down the road. you met with him in person. he's offering you a deal of a lifetime. i would take it. >> we begin the hour, though, with intriguing new comments from the president's longtime personal attorney and fixer. michael cohen now making clear his past, i would take a bullet for mr. trump bravado is no longer there. he is under investigation in new york. one of the many questions is whether laws were broken when cohen made that payment to buy the silence of stormy daniels. in an interview this morning on

abc news, cohen says when it comes to loyalty, family comes first. quote, to be crystal clear, my wife, daughter, son and this country have my first loyalty. once i understand what charges might be filed against me, if any at all, i will defer to my new counsel for guidance. cohen went on to say and this is important. i will not be a punching bag as part of anyone's defense strategy. i am no a villain of this story. i will not allow others to depict me that way. that is without a doubt a message to the president. not a peep so far hin the president's twitter feed. katelyn, it is remarkable the president is quiet. why? >> reporter: it is remarkable, john. the white house isn't saying if they've discussed this interview with the president yet. we know the president's legal team isn't commenting either. if you know this president at all, it does not seem as if it would be long before he does comment on this remarkable interview with michael cohen. you'll recall back in april that

cohen could flup on the president if it came down to that. the president said he didn't think michael would do something like that. if you read these comments from michael cohen this morning, he does not seem to be trying to appeal to the president this morning. he's saying his family comes first. he didn't repeat his past praises and defenses of president trump. and he also said two very important things where he would not comment. one on stormy daniels and that payment made to her. before and in the past he has said he aktsed on his own. he would not repeat that same statement during this interview with george stephanopoulos. and also he would not comment either way on whether the president was aware of that meeting at trump tower in june with donald trump jr. and those russian officials beforehand saying he simply couldn't comment. he also broke with the president on several key things as far as the credibility of the fbi. he said they were polite when they raided his home, his office, his hotel room. he condemned russia from meddling in the election.

he also said he did not believe robert mueller's investigation into russian meddling and whether there was any collusion with trump officials was a witch hunt. stunning comments from michael cohen there. he in the past said he would jump out of a building before turning on president trump. now that seems to be called into question here. >> sure looks like it. his own personal survival instinct kicking in. appreciate that. with me in the studio, kathryn lucy, jeff zeleny, michael warren, and sarah morrie. it is striking to hear, again, if you know the history of michael cohen, the loyalty to the president and to businessman donald trump before he was a candidate. i will not be a punching bag as part of anyone's defense strategy. i will not allow others to depict me that way. the president knows some of the things michael cohen knows. you don't do this interview unless you're trying to send a message to the president. right? >> he seems to be doing that and

the strange thing is, it's noon here in the east on monday and the president has not said a word about this. that's five hours after it first aired and even more after it appeared online. that to me is the unusual thing. the president processing this, watching it very carefully. there's no one in the president's orbit who has been around as long, who's not a member of the family, than michael cohen. this is intriguing on every level. you get the sense that something much more is happening with michael cohen's case this week. >> were banking laws violated and just one piece of the cohen investigation, his business dealings are under investigation. he's the one that paid stormy daniels $130,000. he consistently said it was his idea. he thought i have to help my friend the presidential candidate and pay her off to buy her silence. george stephanopoulos asked him if he stood by that. he said i want to answer, one day i will answer. but for now i can't comment further on the advice of my

counsel. that is a shot at the president. i know the details of what happened here. >> it absolutely is. he -- the way that he is holding back in these interviews that he refuses to answer all of these questions on the advice of counsel, i do think it is a warning to the president. the question is, what is he trying to safe? what does he want out of this? is he really sending aors he's cooperate with them? or hey, i need help with my legal fees. hey, i need some kind of protection. because if you are serious about negotiating a plea deal, this isn't the way to do it. it's not to go out there before you're even facing charges, before you've had substantial conversations with prosecutors and just put everything on the table and say i'm willing to cooperate. now, maybe there's a lot more going on behind the scenes we're not aware of. certainly there is when it comes to the investigation. but it is a confusing way to go out there and try to begin a plea deal negotiation. >> but certainly the thing we've been watching all along is will cohen cooperate?

and the big question mark around that is how much he knows. because as you said, he has worked for trump for a long time. he is the fixer. he knows about all aspects of the business. not just this payment to daniels. that is the big thing now. if he does cooperate, what does that mean for the president? we know at points in time, the president has been more interested in this than the russian probe. >> the president gets heated talking about this without a doubt. >> it's important to note that one thing we did learn in this interview with george stephanopoulos is apparently at the end of the week, michael cohen is going to be getting a new lawyer in that joint defense agreement with him and the president on this is going to be over. that was a real important sign that michael flynn was willing to flip. we might be seeing that happen as well with michael cohen. for all the reasons we've discussed here would be extraordinary.

this is michael cohen in 2017, i'm the guy who stops the leaks. i'm the guy who protects the president and the family. i'm the guy who would take a bullet for the president. >> it's a very different change in tone when you're staring down the barrel of a possible indictment. you know? he hasn't been charged yet. he hasn't been indicted yet. we're waiting to see what happens next. but i think it's impossible to ignore what's going on with paul manafort, the former trump campaign chairman. obviously this is a mueller investigation. but paul manafort is facing 300 years in prison if he is convicted in two different trials. in two different courthouses. if you're saying this is what this guy is facing for all separate from the presidential campaign, how could you not be worried? the one caveat i would add is we don't know what prosecutors want from him if anything. we don't know if they believe he has information they don't already have. they could say our case against

you is airtight. they may be getting information from other means we're not aware of. so it is a little bit of a roll of the dice to say i'm willing to provide information when you don't know what investigators want. >> to me that's the great mystery. even though he says he hasn't been told yet, his lawyers tell him where the jeopardy is. president knows about -- he has acknowledged through -- >> he could be. it's one of the options. he did that unusual interview with george stephanopoulos on "good morning america." not on camera, not live. the two of them essentially sitting down in a hotel room having a conversation on the record, obviously. michael cohen is doing this for

a reason. we don't know what the reason is. i'm surprised the president at least publicly has not responded. has he privately? we have no idea. but that is something that's fascinating that's going on behind the scenes at the white house. i have little doubt the president was not watching that. >> got to keep an eye on this story. going to turn now to breaking news. positive breaking news out of thailand. a group of 12 boys and their soccer team coach have been found after going missing some nine days ago in a complex cave system in the mountains of northern thailand. this according to a high ranking official involved in the search and rescue operation. the boys age 11 to 16. their health is being evaluated now. mark phillips joins us on the phone. he's on his way now to the site where the boys have been found. i've been following this story over the past week or so. people have been talking about the rains and the flooding and the unlikely odds here. this is in some ways a miracle. >> it is a miracle, john. it's been nine days as you said. and the thai authorities never gave up hope on these boys.

now, at the moment all 12 boys and the coach have been found alive in a section of the cave. at the moment they're too weak to move. so they're going to assess what they can do with them before taking them back out of the cave. they might not come out of the cave for another 12 hours depending on how -- what the health condition is and how weak they are. they've been pushing for this for nine days. finally they made it through the cave. i think there's relief from the whole nation that have been following this story for this period. john? >> i know you're rushing to the scene, mark. any indication of where the breakthrough came? how it came? i was hearing reports of the several ways they were trying to get access or at least to get some sort of audio equipment in through different places. any indication of what brought this about? >> just relentless. they just kept going at it and at it and at it. initially they pushed into the

cave earlier on. but then because of the -- it is the monsoon season here and the rains came through. they were actually pushed back. and then they had all these come in and we had the americans here, the australians, the swedes, the chinese all came in to give a helping hand. and today they got up to a section called the t-section. now, the t-section was around about 500 meters from the beach where they were going to push to. and they got caught there for awhile because the water was actually moving quite quickly through the place. also the cave system is quite narr narrow. and with all the equipment in the tanks, the divers, they actually had to make that cave wider. so people could actually move down the cave. you've got to remember a lot of these cave systems, they are still under water. the water hasn't subsided. and they've been trying to pump this water out. over the last couple of days. to the tune of around about 1.5

million liters an hour at one stauj there. still the water wasn't moving that much. but today they got through to patia beach and found the boys. john? >> remarkable story. mark phillips from cnn, i appreciate your reporting on this. again, 12 boys and their coach found alive. the question now, what condition are they in? we'll continue to keep up on that one. up next for us here, the president said the north korea nuclear threat is over. but the latest evidence from his own agency suggests that's not the case at all.

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welcome back. a major finding from a u.s. intelligence agency challenges president trump's optimistic talk about the north korea nuclear threat. the president's national security adviser just yesterday said north korea could denuke within a year. >> and we have developed a program i'm sure that secretary of state mike pompeo will be

discussing this with the north koreans in the near future about really how to dismantle all of their wmd and ballistic programs in a year. if they have the strategic decision already made to do that and they're cooperative, we can move very quickly. >> the if there is pretty important. cnn learned the agency believes north korea has no intention of fully surrendering its nuclear program. at least for now. that's according to an administration official familiar with the agency's findings. a second u.s. official says it will soon best theed. preparing a detailed list of tasks to begin that process. let's bring in barbara starr at the pentagon. barbara, the d.i.a. has a different take than the president. >> you bet they do. you'll remember mr. trump said before the summit before he sat down with kim that he would know within a minute if kim jong-un was serious about all of this. well, not so fast. the d.i.a., the military

intelligence agency says their latest assessment is kim won't give up his nuclear weapons and instead for now will try and hide what he has. and that is absolutely critical. if he can hide missiles, if he can hide warheads, if he can hide his ability to make nuclear fuel, this makes it very difficult for the u.s. under any circumstances to know what's going on inside north korea. they think he's likely to sign some sort of document, to sit and talk to the u.s. as long as possible. you know, why wouldn't he? he can string it out for months. but to actually give up his nukes, to let inspectors in, to verify what is there. to make an honest and candid declaration of what he has, the pentagon is skeptical about all of that right now. i believe they believe that the key would be is kim really feeling the pain of sanctions. it's that sanctions pain, if you

will making the economy tough on him that the u.s. believes brought him to the table. well, maybe the pain isn't so hard right now and he wants to see if he can power through all of it. the pentagon secretary james mattis in a show me wait and see attitude. they want to see kim give up the goods. >> barbara starr live at the pentagon. maybe don't trust but absolutely verify. maybe twist the old words of the past and bring them in here. appreciate the live reporting there. president trump has been told he can build a generational legacy with his next nominee to the supreme court. but one lone republican senator could stand in his way. booking a flight at the last minute doesn't have to be expensive. just go to priceline. it's the best place to book a flight a few days before my trip and still save up to 40%. just tap and go... for the best savings on flights, go to priceline. but if something happened to you... you need life insurance!

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trump was working the phone over the weekend seeking the advice of supporters and key members of congress. whoever he picks, that nominee's chances hinge on a handful of key senators. one of those susan collins of maine says her test, krcrystal clear. >> i would not support a nominee who demonstrated hostility to roe v. wade because that would show their philosophy did not include a respect for established decisions, established law. >> remember during his campaign, donald trump said he would only appoint judges who oppose abortion rights. vice president pence promised the roe decision would be tossed onto the ash heap of history. but now with a better sense of how the confirmation dance works, the president says he won't ask candidates to get specific about abortion rights. >> are you looking for somebody who would overturn roe v. wade?

>> well, you know, it's a -- it's a great group of intellectual talent. but we really, you know, they are generally conservative. i'm not going to ask them that question, by the way. that's not a question i'll be asking. but it is a group of very highly talented, very brilliant mostly conservative judges. >> it is interesting. the president learned from the campaign don't speak loose about this. if you do, one or two, you got to get to the democrats. discipline process. there are interviews this week. the president likes this. he likes to play with the media about how he's going about this. >> right. this is, again, like we were talking about it earlier. like the bachelor playing out who will get the rose at the end. kind of suspense that the president likes to drive. it's played out pretty much how

we would expect. this is how the gorsuch nomination played out. but in the end, both murkowski and collins voted for gorsuch. so that's the expectation at this point. but it'll depend on how much discipline the president can keep in the next week. >> if you look at the polling, this is a kaiser pole. 67% of americans say no the supreme court should not overturn roe v. wade. among republicans, it's 43% no. most people, most legal scholars will tell you they don't think the court would ever overturn roe v. wade. but you think you replace kennedy with someone more conservative, they will have other viability questions. maybe other restrictions, if you will. but there's a way to go through this. let's go back to neil gorsuch. collins had the same concerns then.

gorsuch was asked the question and he knew just how to answer. >> senator, as the book expla s explains, a fetus is not a purposes for the 14th amendment. the book explains that. >> do you accept that? >> that's the law of the land. i accept the law of the land, senator, yes. >> a dozen years earlier, the same question for the man who is now chief justice john roberts. >> i do think that it is a jolt to the legal system when you overrule a precedent. precedent plays an important role in promoting stability and even handedness. it is not enough and the court has emphasized this on several occasions. it is not enough you think the prior decision was wrongly decided. >> is there any reason to think no matter who the president picks, that that's the answer

you're going to get. that i'm not going to talk about specific cases. of course i will respect precedent. and i'll call them as i see them. >> that is the road map there. the president saying he's not going to ask them directly. what he didn't say is he doesn't have to. all that work has been done already. the list of 25 people here, it is a list that has put forward an alternative options, array of choices that the federal society has come up with. unless something happens out of left field, he's going to pick someone from that list. he does not have to have that conversation directly with them. one thing i am being told, the president increasingly over the weekend is intrigued by the idea of a woman conservative supreme court justice. he likes the optics of that. he likes the politics of that. and would that help persuade collins, murkowski? who knows. we don't know. but there are qualified women on that list. that is something he is thinking about, i'm told. look. we've seen this play out before. the question is, would senator

collins vote the same way because it's the kennedy seat? we don't know the answer to that. but think of those democrats like you said. it's not just these republicans. >> under intense pressure in states the president won. tough for them to break with the president, but the liberal base of the democratic party is going to be demanding no votes from these democrats. >> but nothing changed the political calculus for them. they're still vulnerable. they're still facing the same sort of situation here. so it's pretty -- it seems like they're going to vote the same way unless someone -- unless the president picks someone totally different that they're not expecting. >> and we've recently seen votes on some of these candidates for federal judgeships. and some of those democrats have gotten on board. there is some precedent to look at recently. >> i want to go back to something collins said. it's a pretty broad statement

there. she wants someone who's going to respect precedent. well, we just heard from neil gorsuch and john roberts that conservative jurists who have a more conservative view on roe v. wade and legal questions can still i think consistently say i have a respect for precedent and reck nice that. that's what you're going to hear mitch mcconnell is managing this i think in a way that he's not going to allow somebody, the president to nominate somebody who's not going to have some level of support from people like collins. >> mcconnell working closely with the white house on this. they have a system and a process here. we'll see if it continues to play out. up next, a trump-like candidate wins the presidency in mexico. both men say they want to get along. but can they? maker you've ever met. there's a lot of innovation that goes into making our thinnest longest lasting blades on the market. precision machinery and high-quality materials from around the world.

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. topping our political radar today, mitt romney not ready to sign onto trump 2020. telling msnbc the president will face some primary challenges. >> you said recently that you voted for your wife ann romney. >> highly qualified capable person. >> for president in 2016. will you vote for president trump in 2020. you think he's going to get re-elected. >> i did say i think he'll get re-elected. that's not an endorsement. you know, i also think that gavin newsom will get elected in california. it's not something i want to see, it's probably going to happen.

>> president trump today congratulating his soon to be counterpart in mexico saying he looks forward to working to gt. andres manuel lopez obrador has promised to stand up for mexico telling supporters last night after his victory he'll work with the trump white house provided mexico is treated with digni dignity. >> translator: with the government of the united states, we shall try to find a relationship, a friendship, and cooperation for development. always rooted in mutual respect and of our countrymen who work and live honestly in that country. >> this one will be fascinating to watch moving forward. like president trump has been a skeptic of nafta. although the new president has said he wants to make it work.

he said no with more colorful language about mexico paying for the wall. >> there's a continuum here between people on the far right and the far left. a lot of the same sort of criticisms of trade, sort of the business influence on trade policy. you heard from bernie sanders in 2016. so in a weird way, you look at his campaign. it was very much sort of a regionalist campaign against the more elite north from the southern part of the country. there's a lot of similarities i they are polar opposites. >> the president likes new leaders. someone he has a new relationship with. not an existing relationship as with president obama. we'll see. at some point they'll have a meeting. he'll travel here -- i don't know if president trump will travel to mexico or not yet. we'll see what type of a bond they forge.

>> important the economic side of it. up next for us, the battle for millennials and why president trump's republican party should be worried about its future. it's hard to get all the daily fiber we need from food alone.

that's why i love fiber choice, with the fiber found in many fruits and vegetables. fiber choice. the number one ge recommended chewable prebiotic fiber. -- in the prime of your life. actually, most of you aren't even in the prime of your life. you'll be in the prime of your life in about 15 years. i'm going to make it as long as possible. and there has never been a better time to be young and to be american. never been a better time. the opportunity now is incredible. >> that was the president in good spirits there last week. that was a white house event aimed at courting millennials. but the numbers don't lie. in this critical voting block, they're leaning left as we watch to see the millennial impact on the midterm elections. let's go through the numbers. what do younger voters think of the president? not so much.

63% nearly two-thirds disapprove of how he's handling his job. only 30% approve. part of it is he doesn't think the president understands them, respects them. that's part of the generational gap with this president and younger voters. the big question is what about november? the midterm elections, control of gross. look at this. among all younger voters here, democrats plus 20. among the women millennials, democrats plus 44. among men, the republicans have a slight advantage, but that's not where the republican party needs to be. this is a giant opportunity for the democrat ifs they can get these younger voters to come out in a midterm year. that's not always easy. last week we had that stunning upset in new york. the millennial candidate there says, guess what. young people want to get involved. >> people try to identify who was the most likely person to turn out. and what we did is that we change who turns out.

it was eight minutes until the polls close, and these two teenage looking kids came up to me. it was like, we just voted for you. and i was like, how old are you? they're like, 19. and i was like, oh, 19 years old voting in an off year midterm primary election? >> with us to explain those numbers and explore the power of the millennial vote, democrat margie omero, alexandria ocasio-cortez is a powerful messenger for millennials. is she right nationally or only her district? are millennials ready to turn out as part of a blue wave? >> i think you're seeing millennials like a lot of other groups really excited on the left. i was just part of a poll navigator research been coming out every month. and we edjust did an sample of millennials. you had a majority say they were following this election more

closely than ever before. you didn't see that with non-democratic millennials. it's something specific about millennials. it's also democratic groups generally. >> i saw your tweet about the pugh numbers. especially the plus 44 of women. is it the president? is it something else? is there anything that can be done between now and november? >> the problems did not begin with donald trump. this is something the party has been facing since the era of barack obama. where younger voters broke heavily very democrats and republicans thought it's not a big a deal. they'll eventually become republicans as they get older. but millennials are in their mid-30s and they have not come back to the right. it's a problem for the party long-term. short-term in this midterm, i think republicans are assuming that millennials will not turn out. to margie's point. they're assuming if they don't vote as long as we're running up the numbers with seniors, we're fine. i think that's a scary gamble.

because i think you have a lot of millennials who lean to the left. they didn't like hillary clinton. they didn't like donald trump, they stayed home. the stakes feel high right now. they have now seen a year and a half of the trump presidency. some millennials like him. but the rest, less enthused with what they're seeing. that's going to be the problem for republicans. >> a subset of the conversation, i'm not sure this will show up on television. but this is "the new york times" review. the my yillennial socialists ar coming. now, this is a handful of young candidates running in democratic primaries. look at the map of the house of representatives and the united states of america today. you can sell this message maybe on the coast on the east. and the coast on the west. but if you look at the bulk of america and all that red, that's the house of representatives. is this a blessing for the democrats or is it potentially a risk for the democrats to have these young candidates who are for medicare for all, who are

saying let's abolish i.c.e. does that hurt them? >> you have primaries running different race. there are places where there are come pet tiff primaries, we haven't are primaries yet. so everybody is -- most smart candidates are tailoring their message with the people they represent and the people in their district. so i don't think there's any one primary or race that really is indicative of what the national dialogue will be like headed into the general election. i also think it's beyond labels of any one kind. it's really about which party and which candidates are really trying to turn the page on what democrats and republicans can agree on which is we have a very toxic environment in which party is not addressing that. is either making it worse or pretending to not want to have that conversation. >> and how much is it, the specific issues and the toxic environment? and how much is it you look at the numbers about millennials feel the president doesn't understand or respect them.

if you look on both sides, a lot younger than the democratic party partnership. on the democratic side, nancy pelosi. 40s and 50s when you go to the republican side. should that be an opportunity or are all of them too old from the millennial perspective? >> with all due respect to the folks on my side of the aisle, i don't think they necessarily get what young people are about. and it's not just about age. bernie sanders, to his credit, he's not a young, cool guy. but he had a kind of cool with young people because he was authentic. he seemed he cared about them. that he showed up. i think all those politicians that you put up on the screen could use a little more time with millennials, spending a little more time caring, paying attention. i think far lot of young voters, they have opportunities. the youngest woman in the house of representatives is a republican. there are opportunities there. but republicans have to show up

and take them. >> is there any doubt that they will show up this year? that's always -- in a midterm election year, we all know the rules. elderly voters tend to show up all the time. people who are closely identified with the party show up. the republicans think they can use the supreme court to gin up their base. millennials are not known as your most reliability midterm election base. >> so far looking at the specials, the off year elections we've had, the primaries. you've seen a real surge in turnout on the left. that i think, you know, is going to continue. obviously it's far away. if you're a voter, it's far out. if you work in it, it seems around the corner. i think we're going to see this enthusiasm continue because the stakes are really high for so many groups. >> and if you're a republican trying to bend the arc, what do you do? >> run like you're ten points down. don't assume the millennials will stay home. >> thank you. up next, the president now says he wants to put tariffs on

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welcome back. new pushback today against the big trump trade tariffs. tariffs the president wants to make bigger. canada slapped $12.6 billion on u.s. goods just yesterday. china says it will add $34 billion of tariffs. you can see stocks still down 100 points. that's better than it was earlier today. the trade tremors are real. and have groups warning the president against doing more. the u.s. chamber of commerce just today went up with a new website. the message to the president embedded in the url. www.thewrongapproach.com. the president wants to expand his tariffs to cars coming into the united states. automakers here say that would be a mammoth mistake. drive up prices, drive apart the utes and the european union. the president knows the risks, but been here. his commerce secretary says the

boss won't be easily persuaded. >> i think all these claims about the sky is falling are at best premature. there's no bright line level of the stock market that's going to change policy. the president is trying to fix long-term problems that should have been dealt with long time ago. >> and there's every evidence, every piece of evidence that wilbur ross is right. the president thinks he's right here. and that he wants to scare people, disrupt people, force people to pick up the phone and call him saying we'll take a better deal. >> that's right. he's -- he really views this as a key campaign promise, a key reason he's in the white house. so far he really thinks that this is working. i think one thing to watch, though, is -- and we're going to see more unless something changes, you know, more tariffs with china the end of this week. is if we start seeing complaints

from peak constituents. if you start hearing from soybean farmers in iowa. if that stuff starts to change. >> so far the administration pushing back. this is what could shift the calculus. you the american people including trump voters. this is from toyota. toyota says if these tariffs fully go into effect and you go to buy your new camry, you're going to pay $1800 more. will that do it? >> we'll see if it does. but i think the job loss potentially in some red states in automaking areas could have a bigger effect. look at just the entire economy that's changed in the last 20 years or so. look at all the autos being manufactured in south carolina, tennessee. what are those red state governors saying to the president? governor ivy is speaking out. governor mcmaster in south carolina who talks to the president often, he has not said a peep about that. but if people lose their jobs at

the volvo plant, the bmw plant, i think that is more significant than a more expensive toyota. >> the president's view is there might be disruption in the next year or so but it'll be settled before he runs. one of the so-called globalists the president listens to occasionally anthony scaramucci, he's still in contact with the president. he's a hedge fund guy in new york. his message to the president is watch it, you're approaching the danger zone. >> the escalation of the trade rhetoric is causing a loss of confidence. that's very bad for market psychological. i'm just sending up a warning flare to my friend. >> do you think the president is damaging the country in creating a trade war with our closest ally across our border? >> i would say not yet, no. i don't think any real damage has happened yet. >> but will it happen if he doesn't reverse course? >> well, i think that the market

is telling you that. >> look. i mean, the president is on an island. wilbur ross is there, peter navarro is there. but in congress, republicans don't like this. this was a tweet from chuck grassley yesterday. he said when you and i discussed ethanol, i told you people in iowa were nervous about epa, not serving you well. i added people were more worried about your tariffs. i should have added how it could deject because of policy. the republicans are trying to do everything you can. i think you'll hear more like this. >> he has been more consistent on this issue than even immigration. to the point where staff's now preparing legislation that would allow him to opt out of world trade organization rules to show it to the president to make him happy knowing congress would never approve it. >> earlier republicans weren't standing up and saying anything. now the message is not subtle. they're going up there talking

to the president and telling him this is not going to work. including the chamber which republicans need the chamber to spend millions of dollars to help them elect republicans in november. >> fascinating economic story. we'll keep at it. thanks for joining us today on "inside politics." see you back tomorrow. jim acosta is in for wolf blitzer. he starts right now. hello. i'm jim acosta. it's 1:00 p.m. here in washington. thanks for joining us. his once loyal fixer michael cohen showing signs he might flip on the president. the man who once said he would take a bullet for donald trump now shifting loyalties. telling abc, quote, my wife, daughter, and son have my first loyalty and always will. i put family and country first. the divide seems to be deepening between cohen and trump as this criminal investigation continues into cohen's personal finances.

and they a