Trump to Meet with E.U. Leader; Ivanka Trump Shutting Down Her Clothing Company; Does Russia Have Kompromat on President Trump?
VAUSE: You're watching CNN NEWSROOM, live from Los Angeles. Welcome back, everybody. I'm John Vause. We'll check the headlines this hour. In Laos hundreds of people are missing, thousands have been displaced after a dam under construction collapsed causing a flash flood in six villages. The electricity company says a smaller damage intended to hold excess water fractured when it was hit by a heavy rainstorm. The prime minister of Greece has declared three days of mourning after at least 74 people, rather were killed in the country's worst wildfires in years. Dozens of rescuers are searching for those who are still missing. And British officials investigating the poisoning of a former Russian spy are looking at whether a drop squad planted the nerve agent and a second hit team carried out the attack. Authorities warn more vials of Novichok may be hidden in the Salisbury area. Months after the former ex-soviet spy and his daughter became ill two others were exposed when they found a container of Novichok, one died. The Trump administration's trade war takes center stage at the White House in the coming hours. The U.S. president will meet the president of the European Commission. And Donald Trump is ready to make a deal -- kind of. In a tweet just a few hours ago he suggested that both the U.S. and the E.U. drop all tariffs, barriers and subsidies. He says "That would finally be called a free market and fair trade. Hope they do it. We are ready, but they won't," -- exclamation point. No caps though. Global business executive Ryan Patel is with me for more on all of that. Ok. Trump has floated this idea before, right. No tariffs all around, no barriers. Even he thinks it's a nonstarter. So assuming it's a negotiating tactic, which it is</s>RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: Well, it's going to be an interesting meeting tomorrow because at the end of the day it's about the cars -- the auto tariffs. And you know, when the tariffs hit, when you hit a finished product it hits the hardest and if it's single products not as much. So when the Europeans are coming in tomorrow they really, really are going to have to have a plan because I believe and I think there's rumors they already have Plan B set --</s>VAUSE: And that is?</s>PATEL: -- which is they're going to tax in kind right back. And that will be I think the main focus of this meeting is to try to get a deal on the auto side and be very -- you know, if I'm them -- be very clear in this meeting, this is what's going to happen.</s>VAUSE: Yes.</s>PATEL: Right. And it's not about -- you know, the E.U. is going to retaliate, just to be very firm. And you know, they're -- this is --</s>VAUSE: Cards on the table -- this is what's going to happen.</s>PATEL: Yes, because again this auto thing is really a huge thing.</s>VAUSE: Exactly. When you look at the size of the auto industry in both the economies and as you say when tariffs hit a finished product it's maximum bang for your buck, if you like. On Tuesday, the President tweeted, you know, that tariffs are the greatest. And then he was at a gathering of veterans of foreign wars on Tuesday and he added this.</s>DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I have so many people that are so</s>VAUSE: At the beginning you may not have heard it -- got so many people who just basically support what I'm doing. One company which may no longer be in favor of all of this is Whirlpool. Here's some reporting from Reuters. "Home appliance manufacturer Whirlpool, an early supporter of tariffs to protect U.S. washing machines, said on Tuesday that U.S. tariffs on steel and aluminum were raising sharply the cost of raw materials contributing to a slump in second quarter earnings, and shares fell 15 percent to a two-year low." That's just one company which is now feeling the real world impact of this great plan of imposing tariffs. [01:35:023]</s>PATEL: And that was the company a year ago who's supporting this and, you know, the biggest jump almost in the 80s since they've had this. And I think just to be clear, you know, when President Trump says, you know, trade wars are good, no it's not. And it doesn't matter what party you're on, left or right, they've all said this. It is not. And I think everyone agrees -- I think if there is one thing -- two things that both parties agree. A trade war is not good, and yes, you want to have a better deal. I don't think anyone has decided not to. And I think the rhetoric here to me, the timing of this is not great to start tooting your own horn about we are, you know, that the U.S. is moving towards a positive direction, which I don't know yet what that looks like.</s>VAUSE: Ok. Ok, so, you know, we heard from both sides of politics saying this is a bad thing but the administration is pushing on, announcing that it's willing to spend $12 billion to subsidize farmers hurt by tariffs. Here's part of the "New York Times" reporting, "This financial move is an indication that Mr. Trump, ignoring he concerns of farmers and representatives in Congress and even some of his own aides about the adverse consequences of a trade war he says he relishes plans to plow forward in escalating his tariff tit-for-tat around the world." Why is this President so determined and why at this point can't Congress stop him because essentially Congress is responsible for tariffs, not the President?</s>PATEL: You know, again the timing of this today came out is interesting, right -- right around election time, you know. When you look at this headline from a macro perspective you're like oh, wow, trying to buy some time, really digging in the heels on this trade piece.</s>VAUSE: Yes.</s>PATEL: But if you go deeper and you reed on some of the associations of the farmers, a few of them quite often have said this is actually great for the shot-term, but long-term what do you do with the surplus?</s>VAUSE: Right.</s>PATEL: Right. It doesn't address the long-term piece of it. And I think -- again I think this buys a little time but doesn't really solve the problem of what's going to go in the future. Because yes, you can give them some aid, but that doesn't really fix the problem.</s>VAUSE: Where does the administration find $12 billion for this?</s>PATEL: I didn't read anywhere -- they didn't mention.</s>VAUSE: Yes.</s>PATEL: I looked really hard to find it. I think just to kind of piggyback on that, what they did on the tax reliefs that's going to get washed off, if not --</s>VAUSE: Yes.</s>PATEL: -- you're going to get a negative piece.</s>VAUSE: Yes. All the benefits, if there was any for, you know, the economy which was minimal, it will be destroyed by the tariffs.</s>PATEL: And there is this notion -- tariff isn't a fixed income. So I want people to know at home like this is not an income that you can bank on for the next year or two years. This is not something like federal income tax, specifically.</s>VAUSE: Right. Uncertain times, Ryan -- thank you. Ok. Well, her father's election as president certainly brought attention to Ivanka Trump's clothing and accessory company. Now the first daughter has decided to shut down her own brand. Christina Alessi has more.</s>IVANKA TRUMP, FIRST DAUGHTER: Hi, everyone. I'm Ivanka Trump.</s>CHRISTINA ALESSI, CNN CORRESPONDENT: Tonight Ivanka Trump's clothing line is out of fashion. In an announcement today the President's daughter said her company which is named after her and featured her initials in its logo is shutting down. The apparel line which Trump launched in 2014 before her father's run for president sold women's wear online and in department stores. In a statement the President's daughter said she didn't know, quote, "if I will return to the business. But I do know that my focus for the foreseeable future will be the work I'm doing here in Washington". But Trump's brand has bee embroiled in controversy since the presidential election. In part because all of the products were made overseas, even though her father has touted his desire to bring jobs back to the</s>U.S. I. TRUMP: One year ago, I introduced my father when he declared his candidacy.</s>ALESSI: During her 2016 speech at the Republican National Convention, Trump wore a dress from her line which she later highlighted on Twitter. And last February counselor to the President Kellyanne Conway hawked Ivanka products during a live TV interview.</s>KELLYANNE CONWAY, COUNSELOR TO THE PRESIDENT: Go buy Ivanka's stuff. This is just -- it's wonderful line. I own some of it. I fully -- I'm going to just give -- I'm going to give a free commercial here. Go buy it today everybody. Go find it online.</s>ALESSI: Conway was later rebuked by the Office of Government Ethics which called her endorsement a quote, "clear violation of her position". Profits of the brand initially rose in the months immediately following the election but have since declined according to a person with director knowledge. Several retailers including Nordstrom have stopped carrying the clothing line. Nordstrom saying in February 2017, its decision was due to slowing sales. Just days after that decision President Trump attack Nordstrom on Twitter tweeting, "My daughter Ivanka has been treated so unfairly by Nordstrom. She's a great person, always pushing me to do the right thing. Terrible." And two months ago Ivanka Trump faced renewed criticism after the fashion brand scored seven new trademarks in China while the President was engaged in trade talks with the country. Christina Alessi, CNN -- New York.</s>VAUSE: Well, a slim majority of Americans, according to a new poll, believe the Kremlin has something on the U.S. president. So when we come back -- what is kompromat and how is it used throughout the former Soviet Union?