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What We Know with Max Foster

Trump Says He'll Send New Weapons To Ukraine; Trump Lashes Out At Putin Over Peace Talks In Ukraine; Trump Insists "No Extensions" On New August 1 Tariff Deadline; Trump & Netanyahu To Meet Again Soon On Gaza; Death Toll From Texas Floods Rises To 108 As Search Continues; French President Macron Begins State Visit To U.K.; Rubio Impersonator Using A.I. To Try and Dupe Senior Officials. Aired 3-4p ET

Aired July 08, 2025 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:00:23]

PAULA NEWTON, CNN HOST: U.S. President Donald Trump says Russia's Vladimir Putin is full of B.S.

I'm Paula Newton, in for Max Foster. This is WHAT WE KNOW.

A tense U.S. cabinet meeting could lead to Ukrainians benefit, while U.S. President Donald Trump has not yet endorsed new sanctions on Moscow, he is

apparently keeping his options on the table. This comes as the U.S. now plans to send additional weapons to Ukraine. The move marks a stark

contrast from last week, when the Pentagon paused certain weapons shipments following a review of military spending, a pause that President Trump

claims he knew nothing about.

Now, President Trump is also venting his frustrations over the difficulties in brokering a peace deal between Ukraine and Russia. At his cabinet

meeting just a few hours ago, he called out Russian President Vladimir Putin.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We get a lot of (EXPLETIVE DELETED) thrown at us by Putin if you want to know the truth. He's very

nice all the time, but it turns out to be meaningless.

(END VIDEO CLIP)

NEWTON: Okay. I will fill in the B.S. there. That's what it was. That was the bleep.

Kevin Liptak certainly heard it. He is live in Washington with the details.

I mean, look, this was significant displeasure more than we've heard him voice before with Russia. But when it comes to actually giving weapons to

Ukraine or slapping more sanctions on Russia, what more are you learning from the White House? Is he going to go through with this?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah, and that's the big question. How is he going to actually channel this frustration towards

Putin into any kind of policy? He stopped short in that meeting today of saying that he would apply new sanctions on Moscow because remember, Paula,

the Senate is currently considering this package of new sanctions endorsed by Republicans and Democrats, President Trump saying that he would keep

that option open today, but not saying specifically whether he would sign it.

And he has been reluctant in the past to put these sanctions in place because he thinks that it could potentially push Putin further away from

the negotiating table. Not that he's anywhere near the negotiating table at the moment, but President Trump clearly thinks that there still is a window

that could potentially be open for these talks. And so, not signing on to these sanctions quite yet.

He is saying that he will provide these new defensive weapons for Ukraine, including the Patriot missiles, which are so important because these

barrages of missiles and drones that Russia has been sending increasingly to Ukraine over the last several weeks, many of those missiles can only be

intercepted by the U.S.-made Patriot systems. And so, these are absolutely critical to Russia's -- I'm sorry -- to Ukraine's defenses.

Just last week, we heard from the administration that it was going to put a pause on shipments of those weapons as the U.S. undertook essentially an

inventory of its stockpiles. President Trump today said he didn't actually know who put that halt in place. And saying that he had approved those

Patriot missiles and other weapons to start being shipped to Ukraine going forward, which I think is one sort of a rebuke of Putin. Clearly, Putin had

taken note of the pause. Now, President Trump saying that that's no longer an effect, that Ukraine will be getting these systems, that it needs to

protect itself.

But it's also, I think, an endorsement in some ways, of the Ukrainian cause. You know, he talked to Volodymyr Zelenskyy on Friday. Zelenskyy said

it was their best conversation ever.

And when Trump was speaking today, he did have an interesting moment when he was sort of addressing skeptics of U.S. support for Ukraine when he

said, you know, whether you believe that the U.S. has provided too many weapons to Ukraine, whether you believe that the U.S. has spent too much

there, which at the end of the day is his position. That's the position he took as a candidate. He said, whether you believe that or not, you have to

accept that the Ukrainians have been brave in all of this. They've been brave in operating these dangerous systems. They've been brave and staving

off a Russian invasion of their country, which I think was an interesting moment.

President Trump, in some ways is evolving on his viewpoint here, in part because he's so frustrated with Putin for not coming along to his cease

fire plans, but also because he still thinks that the Ukrainians could potentially fight this out going forward.

NEWTON: Yeah, I noted, Kevin. It was actually a very kind of personal moment when a Ukrainian reporter asked him in a -- in a press conference

about was her partner fighting on the front lines, and that she had to relocate outside of Ukraine to keep her children safe.

LIPTAK: Yeah.

NEWTON: Yes. You make a good point, right? Evolving. His opinions seem to be evolving on this.

Kevin Liptak for us, appreciate it.

[15:05:00]

Now, President Trump also insists there will be no extensions on his new August 1st tariff deadline. This is the latest delay to Mr. Trump's so-

called Liberation Day tariffs he first announced in April. But according to the U.S. president, he hasn't delayed anything, claiming august 1st has

always been the deadline.

As for the markets, they're relatively unmoved by Mr. Trump's latest threats. You see there the Dow, the Dow down now about 150 points.

I want to bring in our Matt Egan.

Maybe not the markets, but we should all spare a thought for any kind of American business right now or beyond that. You know, are trying to figure

out what to do with all of this volatility and uncertainty. We were expecting letters to more countries about that August 1st deadline.

And then at, Matt, we got copper. What's behind that 50 percent tariff as far as you know?

MATT EGAN, CNN REPORTER: Well, Paula, that would be just the latest tariff from. This administration really aimed at trying to fortify U.S. supply

chains over national security concerns. So, we had the steel and aluminum tariffs. Then, the auto tariffs. And this would be a 50 percent tariff on

copper.

And really the moment the president announced this during the cabinet meeting, we did see copper futures surge to all time highs, up about 10

percent as we speak as investors are making sense of all of this. You know, it's really, really remarkable to think about how the markets have reacted

to the last 72 hours or so, right?

Weve gotten letters to 14 different countries from the president on tariffs as high as 40 percent. Those tariffs are largely in line with the

Liberation Day level tariffs from early April, that really unnerved investors. On top of that, there's the copper tariffs that we just talked

about.

He also -- the president also floated a tariff of up to possibly 200 percent on imported pharmaceuticals into the United States. And so, you

have all of these different developments coming at the same time. And yeah, the Dow is down by, you know, less than half a percentage point after a

retreat yesterday. But this comes after U.S. stocks had skyrocketed to all- time highs at the end of last week.

And so, it's pretty notable to see the markets barely flinch at the latest tariff threats. And the only real conclusion here is you see that Nasdaq is

basically unchanged on the day. And as well as the S&P 500. I think the logical conclusion is that the TACO trade is back, right? The trade that

has been popularized on Wall Street around the thinking that Trump always chickens out, that he tends to back down from his most extreme proposals

and I think that investors believe that that's at play here as well.

Veteran investor Bob Elliott, he had an interesting tweet on this idea last night. He said, TACO is consensus and already fully priced in at this

level. But he also noted the trouble is, without the pain of falling markets, he won't chicken out, right? The thinking there is, if everyone

believes he's going to back down, then the markets not going to really take a big hit. But if the market doesn't take a big hit, then it removes a lot

of the pressure on the administration to walk back their extreme policies.

So, there is a little bit of a paradox there. Kind of a chicken and an egg problem where if there is no market reaction, how do you know he's going to

chicken out? And so, that's kind of where we are right now, where investors are trying to make sense of not only which tariffs are going to actually

get implemented and when, but ultimately, Paula, what the economic impact will be.

NEWTON: Right. I counter, throw out your market analysis.

Let's talk to business. When they see the data start to fall in this economy, that TACO trade is going to look a heck of a lot different. Matt

Egan keeping up with this for us. And that's not an easy job.

Thanks so much, Matt. Appreciate it.

EGAN: Thanks, Paula.

NEWTON: Meantime, in just more -- just over an hour, President Trump will meet again with Israeli Prime Minister Benjamin Netanyahu to discuss a

ceasefire deal for Gaza. That follows their working dinner at the White House Monday night.

Mr. Netanyahu spending today on Capitol Hill. He met with House Speaker Mike Johnson earlier behind closed doors.

CNN's Arlette Saenz is on Capitol Hill for us.

And I think everyone should note. Look, this cease fire, even the 60 day one, is not a done deal yet. We know the president wants it done in a

matter of days. Are you getting a sense that that timeline is still possible?

ARLETTE SAENZ, CNN CORRESPONDENT: Well, Paula, the Trump administration particularly is hoping that they can secure the ceasefire deal by the end

of the week. But there have often been times where discussions have been very close, only to fall apart. So, I think only time will tell where

exactly this will be heading.

But Israeli Prime Minister Benjamin Netanyahu has been in Washington for the past two days, where he's met with President Trump.

[15:10:05]

He was also up here on Capitol Hill, where he met with the House Speaker Mike Johnson. In a few hours, Netanyahu will meet with a bipartisan group

of senators, but it all is playing out against the backdrop of President Trump pushing Netanyahu to try to get closer to this ceasefire agreement.

Now, an Israeli source says that one of the sticking points in the discussions between Israel and Hamas has been about the withdrawal map and

timeline for Israeli military forces out of Gaza, as Israel and Hamas have different viewpoints on how this should proceed.

But after his meeting with Speaker Johnson up here on the Hill, Netanyahu had this to say about the prospects of a ceasefire deal and where those

stand.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: I think that we've gotten closer to it, and I hope we can cross a line. That is our purpose. But I

think the less -- the less I speak about it publicly, the more likely that we might get it.

(END VIDEO CLIP)

SAENZ: Now, when Netanyahu is done with his meetings up here on the Hill, he's actually expected to go back to the White House to meet with President

Trump today. And Trump has made clear that securing a ceasefire deal between Israel and Hamas is a top priority for him. But he's also

interested in what it could mean for broader peace in the Middle East. Trump has his eye on trying to normalize relations between Saudi Arabia and

Israel, and achieving a ceasefire is one key step in trying to reach that goal.

Now, there are still major questions about whether Netanyahu will agree to a total ceasefire at some point. There's discussions and debate about what

needs to happen in Gaza. If the war were to end. But for President Trump and his team, they are working towards, at least for the time being, trying

to get that temporary 60-day ceasefire, as Trump has really tried to stake a lot of his legacy when it relates to foreign policy in the Middle East

and trying to broker peace in that region.

NEWTON: And a lot of lives at this hour, hanging in the balance in both Gaza and, of course, with the hostages.

Arlette Saenz for us. Thanks so much.

Now, the death toll in Texas from catastrophic flooding has risen to 108 as authorities comb through muddy water to find those still missing.

In Kerr County alone, 87 bodies have so far been recovered. Sadly, that includes 30 children, five girls who were camping at Camp Mystic and one

counselor remain missing. The weather forecast has improved, but rescuers still face many obstacles.

Kerr County officials today dodging questions, in fact, on weather, emergency alerts were sent to residents with enough warning.

(BEGIN VIDEO CLIP)

SHERIFF LARRY LEITHA, KERRY COUNTY, TEXAS: We're in the process of trying to put a timeline, you know, that's going to take a little bit of time. As

I've told you several times, that is not my priority at this time. There's three priorities. That's locating, locating the people out there,

identifying and notifying the next of kin that that is what I'm taking is my job as sheriff here to do.

(END VIDEO CLIP)

NEWTON: You know, unfortunately, authorities are unclear still about how many people are missing as tragic stories of those who have died are

continuing to emerge.

Twenty-one-year-old Joyce Catherine Badon was found dead on Monday. She had been staying with friends at a cabin when those floods hit.

Her father spoke to CNN about his daughter.

(BEGIN VIDEO CLIP)

TY BADON, VICTIM'S FATHER: Just a wonderful girl, and couldn't ask for a better daughter. All through school, she's just easy, you know? No, no

shenanigans or anything like that. I mean, she -- she was a normal girl. We would have fun. But yes, we loved her dearly.

(END VIDEO CLIP)

NEWTON: I want to bring in our Isabel Rosales, who is in Kerrville and has been there for days.

Isabel, obviously, those stories are incredibly heartbreaking. And, you know, once the shock wears off, I know that there is intense grief there on

the ground, but also a lot of questions, right, about exactly how this unfolded.

ISABEL ROSALES, CNN CORRESPONDENT: Right. So many questions that, as you saw in that exchange over with Kerr County officials, ended with them

essentially dodging, right? We're trying to figure out that information gap of like 3 to 4 hours between when that first emergency alert came out at

1:14 in the morning and then when the river started to, to burst from its banks and flood homes.

What were the decisions being made? Were they wagering on evacuations that they discussed, that all of these very important critical pieces of

information that community members are asking, not just us, the media trying to berate them or anything, it's a matter of transparency.

Now, I'm actually in Center Point. That is southeast of Hunt, so this is still Kerr County, but I'm in Central Point. I wanted to note that where

this is an active scene right now.

[15:15:00]

This is -- looks to be a lake, but this was not here before. This was all dry. This is the result of that flash flooding.

To the left is the Guadalupe River. But I actually want to zoom in all the way over there. You're going to see this crumpled piece of metal. I'm told

by volunteers here, state police are also here. Cadaver dogs are here. I'm told that that is some sort of a vehicle with the axle exposed. It's buried

underneath the gravel, so they need to get access into this to see if this is a flatbed trailer and RV or a truck.

And then in the water, it's the same deal. They've got another vehicle submerged in there. They had divers in the area, but they've determined

it's unsafe for them to enter these waters. So, they're pumping out the water manually.

I'm told this would take weeks for this water to dry out on its own. So they're pumping it out to get to these vehicles quicker and make sure that

there are no remains in there -- Paula.

NEWTON: Isabel, the only good news I see there right now is the fact that the weather has at least cleared up.

I mean, what are the obstacles right now? Because as so many officials have said, they will not rest until they can determine what happened. All of

those that are still unaccounted for.

ROSALES: Right. I'll start with this blaring Texan sun. It is just exhausting, exhausting. It's mentally and physically draining is how

volunteers have described it to me.

And I mean, look at this terrain. It is not smooth. It's rocky. You have cliffs all over the place. You have dangerous debris and tree limbs that

have fallen over trip hazards.

There are fire ants here in Texas too, that I've seen biting volunteers as well. So, it is not easy. The nature is in the way.

And they've got miles and miles and miles to check from the hunt area where Camp Mystic is at down 25 miles downriver to where I'm at right now. So,

Paula, this is going to take a long time, clearly.

NEWTON: Isabel Rosales for us on the ground, grateful to you. Appreciate it.

Now coming up, much more on the ceasefire talks for Gaza. We'll get some perspective from a veteran Palestinian lawmaker who's joining us from Doha

this evening.

(COMMERCIAL BREAK)

[15:20:24]

NEWTON: Now, U.S. ceasefire talks for Gaza are underway. Israel's defense minister says he has ordered plans for the entire population to eventually

be held in Rafah.

Israeli media say Israel Katz gave a briefing on Monday. He said some 600,000 Palestinians would be held at first in what he called a

humanitarian city built on Rafah's ruins. He said once there, they would not be allowed to leave, but said Israel intends to pursue an immigration

plan. Israeli human rights lawyer tells CNN that could amount to forcible transfer and would be a war crime.

So, what we want to know is can these ceasefire talks in Doha really bridge the gap between Israel and Hamas in time?

Joining me now is Dr. Mustafa Barghouti, a member of the Palestinian parliament, and he is in Doha tonight.

Good to see you, Dr. Barghouti, again.

I think many remain optimistic. On a 60-day ceasefire. Given everything we are hearing in terms of things muddying the waters, how optimistic are you

right now?

DR. MUSTAFA BARGHOUTI, MEMBER, PALESTINIAN PARLIAMENT: Well, I feel we're closer to a ceasefire than any time before, for sure. And probably the

pressure that President Trump is exercising on Netanyahu is the most important factor here. Besides the fact that Netanyahu has failed in

achieving any of his military goals in Gaza.

So, these factors are contributing. And it seems that many of the negotiations issues could be resolved soon, including the issue of access

to humanitarian aid through United Nations and other international agencies, the issue of exchange of prisoners, the issue of, of course,

guarantees that there will be negotiations during the ceasefire period to end the whole war, not just the ceasefire, temporary ceasefire.

The most important issue that still needs to be discussed and finalized is the issue of the maps of the Israeli withdrawal from Gaza. That's a very

sticking point.

What is very threatening here is actually what you just what you have just mentioned about the statement of Mr. Katz, the Israeli army minister, where

he speaks about humanitarian city, but actually it's ethnic cleansing city. And that's what Netanyahu spoke about today. If he keeps his plans, this

will destroy everything.

And the plan is to push all Palestinians into a very little area near Rafah to create a huge concentration camp. And that's what it means when they say

they will bring people in and prevent them from leaving, and then start ethnically cleanse them to other countries.

NEWTON: You know, Dr. Barghouti, though, this is the point, right? You already answered my next question because I was going to ask you who can

bring the most pressure to bear here on Israel? You know, you indicate that it is the president and yet the president himself has mused about what a

permanent ceasefire would look like, and that would include perhaps the forcible removal of Gazans from their land.

BARGHOUTI: That is unacceptable. And no Palestinian will ever accept that. And that is the best way of destroying any potential for a ceasefire or any

potential of ending this war. So ethnic the people of Gaza.

NEWTON: Sorry, I'm sorry to interrupt, but I do want to make a fine point of it. Do you believe that the 60-day ceasefire actually rests on that

point right now? Because I think if you speak to people in Gaza right now and you know better than most about how desperate they are or speak to the

families of the hostages, they want the 60 days, they want to deal with everything else and all the complications afterwards.

BARGHOUTI: No, I think the ceasefire can happen regardless of these statements of Mr. Netanyahu. But that puts a great responsibility on the

shoulders of the United States of America and Mr. Trump to revise his position on this matter, because if he keeps allowing Netanyahu, even in

front of him, to speak about the ethnic cleansing of Palestinians from Gaza, then the possibility of ending the whole war in general will vanish.

And more importantly, this would make the United States of America and the president of the United States of America complicit and even participant in

a commission of a war crime that should not be accepted in any way.

And one more point, we were really disappointed about the fact that Netanyahu rejected the idea of Palestinian statehood and the whole idea of

two-state solution.

[15:25:09]

And Mr. Trump remained silent. As a matter of fact, since he was elected, he never mentioned a Palestinian state.

NEWTON: He didn't just remain silent when he was given the question he asked for Prime Minister Netanyahu to answer that question.

But this brings me to my next question. I'm really interested to hear your answer to this.

BARGHOUTI: Please?

NEWTON: You know, the leading, the leading sheikhs in Hebron have now said that they are ready to have peace and full recognition of Israel as a

Jewish state. They said this to "The Wall Street Journal". Their plan is for Hebron to actually break away from the Palestinian Authority and

establish an emirate, an emirate that would join the Abraham Accords, that would be certainly what they believed to be an economically vibrant and

autonomous state.

Are you going to tell me that that's just ridiculous and that we should just ignore any other idea that sidesteps the two-state solution, but is

still a solution?

BARGHOUTI: It's not only ridiculous and absolutely nonsense, and it's really bad journalism to put attention on such a statement, which came out

from 3 or 4 people, their own families denied them and refused their statement. And these people who came out with this statement do not live

even in Hebron.

And today, we had several statements by different Palestinian groups and families rejecting all these statements. And the although this statement

and the Israeli propaganda about it, it shows you that Israel is still dreaming of bringing back an idea that failed long time ago, which was the

village leagues creating a structure of Palestinian collaborators to work for the Israeli occupation as a substitute to the right of Palestinian

people to self-govern themselves and have a state of their own and have freedom.

It's one way of keeping occupation that has been all the time. The main problem of what we see today, and the main problem of all conflicts.

NEWTON: But if you forgive me, it is a problem. And allies in the region, allies of the Palestinian people, are the ones that need to step to the

fore to try and come up with some type of a solution.

Dr. Mustafa Barghouti, we have to leave it there. But just for now, we'll be back in touch with you.

BARGHOUTI: Thanks.

NEWTON: Really appreciate it.

Still to come for us, President Trump pushes back a tariff deadline. But will he stick to his guns come August 1st? More on his tariff whiplash just

ahead.

(COMMERCIAL BREAK)

[15:30:55]

NEWTON: Turning now to Donald Trump's new trade threats. The U.S. president insists there will be no extensions on his new August 1st tariff

deadline. Now, some countries have already started taking action. Earlier, Japan's prime minister convened a tariffs task force and says he is

interested in a, quote, early agreement with the United States while protecting Japan's national interests.

As we've been reporting, President Trump's so-called reciprocal tariffs deadline was moved from July 9th this Wednesday, it was supposed to be this

Wednesday, to August 1st. Yet the president insists the deadline has always been August 1st.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It wasn't a change. It was August 1st. We don't change very much. You know, every time we put out a

statement, they say he made a change. I didn't make a change. Clarification. Maybe? No. August 1st, they pay.

(END VIDEO CLIP)

NEWTON: What we don't know is, will Donald Trump actually stick to this new August 1st deadline?

Joining me now is Justin Wolfers. He is professor of economics at the University of Michigan. And he joins us now.

I mean, look, the president's capriciousness has been damaging to a lot of these trade negotiations or others would say that, you know, the countries

are basically negotiating with a gun to their heads. And that's effective for the United States. What do you think?

JUSTIN WOLFERS, PROFESSOR OF ECONOMICS & PUBLIC POLICY, UNIVERSITY OF MICHIGAN: First of all, the president literally just signed an executive

order changing the date from July 9th to August 1st. He signed something just a number of hours ago saying, I wasn't always saying it was August

1st.

Your suggestion is that other countries are coming to the talks with a gun to their heads. Realize that when the president imposes tariffs, he's not

imposing them on other countries. He's imposing taxes on Americans who import from other countries. So, the first people he hit, he hurts are the

American people. The second people he hurts are the exporters from those other countries.

So, in some sense, he is threatening that he'll hurt exporters in other countries. And it's only a credible threat because he appears not to care

about the pain that he causes Americans. Now, it turns out when he calls Americans a lot of pain, they have a way of suggesting that maybe you ought

to notice and take account of their pain, which is exactly why he originally walked back the Liberation Day tariffs, although it looks like

he's in the process of putting them back on again right now.

NEWTON: Professor, tell me something. We have had many economists predict that it would come up in the economy, that employers would complain, CEOs

would complain, inflation would rise, jobs would melt away. None of this has happened so far. That doesn't mean it won't happen in the last two

quarters of 2025.

But how do you see the economy right now? Because it's proven so far to be resilient, even with all this uncertainty with tariffs.

WOLFERS: Do you remember that episode of "Friends" when Ross and Rachel separated for a while and Ross went off with another woman and Rachel was

very unhappy. And Ross's response was, I thought we were on a pause.

That's actually what's been happening with tariffs. We've been on a pause. So, people who are looking for the impact of the most destructive tariffs

in the data should realize Trump has not had the courage to put those most destructive tariffs on for even a single day yet. The problem is, if he

does go ahead and it looks like at the moment what he's threatening to do is go back to the Liberation Day tariffs that he never collected.

If he imposes them, then they will have an effect in the future. So, what he's done by dragging his feet is made sure that whatever inflationary

impact there is, is not immediately obvious. In the first months of the Trump administration. But if he follows through with the threats, he's

imposing a cost on somebody.

My guess is that our foreign suppliers are not going to offer a special discounts because the president decided to tax his own people, which means

he's either imposing a cost that's going to be borne by American businesses and reduced profitability, which will hurt their stock prices, or they're

going to pass it on, as they always seem to do, and jack up the prices. And that's all still to come, because the tariffs themselves are still to come.

[15:35:05]

NEWTON: So, you know, more, you know how the markets are reacting to this. They're not really reacting to this right now.

WOLFERS: Right.

NEWTON: And they're at record highs. What are they seeing that that businesses are missing? Because as you point out, a lot of businesses have

been lobbying their Congress people, their senators and the president when they can, that these tariffs will hurt.

WOLFERS: Yes. So, look, there's an expression that became very popular, TACO, Trump always chickens out. People have convinced themselves that

Trump is going to chicken out again. So, if you recall the original Liberation Day tariffs on April 2nd, they're incredibly high, incredibly

destructive. And really many analysts thought would put the economy on the cusp of recession.

Those tariffs were never charged. They simply lasted seven days. And then he walked it all back and essentially everyone has gotten used to this

dance where Trump says something outrageous and then walks it back. And I think much of Wall Street is betting, yes, he's saying big numbers and

making big threats. But their bet is he's not going to follow through.

For what it's worth, I think they're too confident about this. My reading of what Trump does and how he acts is he really likes tariffs. He meant to

impose them on Liberation Day. And it just so happened he allowed people to talk him out of it. But there's a real chance he's not going to allow them

to. In which case markets are going to wake up and see and be worried about this damage all over again. For now, they're just not taking it seriously.

NEWTON: And I don't have a lot of time left. But do you believe we're going to see this in the third quarter, in the fourth quarter? Because the

president has been clear, a lot of the tariffs that are in place now will stand, and at least that 10 percent will stand for sure. I mean, what --

when do you think were actually going to see it in the data.

WOLFERS: Right. Great question. So, the first answer is when do you think we'll actually see the tariffs being charged. So, you're right to say that

10 percent tariffs have been charged. It is normally the case that it takes a while for new cost pressures to feed their way through the economy. So,

it wouldn't be at all surprising for it to take six months, which would put it in the second half of this year.

But the new tariffs that he's talking about right now, they're much, much, much higher. Also new tariffs on copper and pharmaceuticals. And they too

will start to feed through. So that would suggest that maybe we'll see a real impact on price stickers by the second half of this year.

NEWTON: Not good news for American consumers or these countries trying to get deals. Professor, the `90s called. They want their sit back -- sitcom

back.

I have no -- I kind of remember what happened with Ross and Rachel. And so that actually turned out okay, as I remember. So there -- there we go. We

will have you back to discuss that as well.

Justin Wolfers for us. Appreciate it.

Now coming back, a wildfire shuts down the airport in France's second largest city. Details on the situation in Marseille. That's ahead.

(COMMERCIAL BREAK)

[15:41:00]

NEWTON: So one of the big questions surrounding the deadly floods in Texas is how did so many people not get the alert? The White House says the local

national weather service was fully staffed. However, the former administrator of the National Oceanic and Atmospheric Administration,

otherwise known as NOAA, says the that this does not tell the whole story.

He tells CNN one key role was not staffed.

(BEGIN VIDEO CLIP)

DR. RICHARD SPINRAD, FORMER NOAA ADMINSTRATOR: I am convinced that the staff cuts that we saw were a contributing factor to the inability of the

emergency managers to respond. The staffing was just fine in the White House has concurred with this, to get the forecast out, to get the watches

and warnings issued.

But when you send a message, there's no guarantee it's being received. So, someone needs to follow up. And that's the warning coordination

meteorologist, a position that was vacant.

(END VIDEO CLIP)

NEWTON: Now, search efforts continue in Texas. Meantime, for those still missing following the floods, communities are mourning now those who were

lost, including at least 30 victims who were children.

CNN's Tom Foreman has more.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): In the wake of the rising Texas floodwaters, the list of victims is growing.

UNIDENTIFIED FEMALE: Oh my God.

UNIDENTIFIED FEMALE: Oh my God.

FOREMAN: Especially at Camp Mystic, where more than two dozen campers and counselors died.

Lila Bonner was there, enjoying the summer before third grade. Her parents wrote, "We ache with all who loved her." They say she was killed with her

cabin mate and best friend, Eloise Peck. Her family says she loved spaghetti dogs and animals.

A vigil was quickly called for Linnie McCown and Mary Stevens, two elementary school age victims from Austin.

While elsewhere, families are mourning Renee Smajstrla, Janie Hunt and Hadley Hanna, who was enjoying her first year at the camp. Her mom said she

was the most joyful, happy kid.

Anna Margaret Bellows came from Houston. Sarah Marsh came from near Birmingham.

And camp owner Dick Eastland came to the rescue as hundreds of campers were pulled to safety. His grandson says Eastland lost his life trying to reach

more, noting on Instagram if he wasn't going to die of natural causes, this was the only other way -- saving the girls that he so loved and cared for.

JOE HERRING JR., KERRVILLE, TEXAS MAYOR: I've lost two friends. We love them. And they're gone.

FOREMAN: The search for the flood victims is stretching over dozens of miles, along rivers and creeks, through valleys and trees.

LOUIS AMESTOY, EDITOR & PUBLISHER, THE KERR COUNTY LEAD: You've seen the debris fields here. I mean, there's probably people possibly buried in some

of those debris fields. And it's going to take a long time to get those folks out.

FOREMAN: Anywhere anyone might be.

TONIA FUCCI, FLOOD WITNESS: You just want them to be found for the sake of the families. But, you know, it's not going to be a good ending.

FOREMAN: It was not good for the Harber family. Blair, 13, and Brooke, 11, disappeared along with their grandparents. The family says the girls were

found holding hands in death. No word on the grandparents.

(SINGING)

FOREMAN: Jane Ragsdale was the owner of another nearby summer camp. It was empty, but she died there just the same.

GREG WHITE, FRIEND BILL HOUSTON MISSIONG IN FLOOD: The RV park was just gone. Everything. It was, you know, it's -- it wasn't on this earth

anymore.

FOREMAN: Greg White's friend Bill Houston is nowhere to be found. Although White says the body of Bill's dog, Sage, was discovered in the debris.

High school soccer coach Reece Zunker and his wife Paula were swept away. Psychologist and college professor Katheryn Eads, too.

(SINGING)

FOREMAN: And even as some campers have ridden away from the calamity singing songs of faith, said search for more victims goes on.

Tom Foreman, CNN.

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[15:45:04]

NEWTON: Now, a fast-moving wildfire in southern France has led to the closure of the airport in Marseille. High winds are fanning the flames and

sending smoke into that city. Authorities have told residents to stay home with doors and shutters closed and to avoid traveling on the roads. It's

unclear when the airport will reopen.

Now our meteorologist, Derek Van Dam, has more on the wildfire and what's behind it.

(BEGIN VIDEOTAPE)

DEREK VAN DAM, CNN METEOROLOGIST: A wildfire has reached the outskirts of Marseille in the south of France, sending a plume of smoke billowing into

the sky. Look at this dramatic video of the smoke from the wildfire darkening the skies overhead across Marseille. By the way, the airport is

shut and authorities are urging residents to stay indoors, away from the toxic wildfire smoke.

This wildfire is actually erupted in size. Its so big that its visible from satellite. Take a look at this NASA worldview satellite image. We'll zoom

in to the south of France. Marseille, located right about here. The hotspot with the wildfire located with that shading of orange. You can almost see

the plume of smoke that's coming from a northerly direction. And that's really important because it gives an indication, at least to me, what's

going on, on the ground there. I'll explain.

So, look at this on the ground image. You can see the smoke again cascading over the mediterranean and the town of Marseille. But there really a deeper

look into the temperatures here. It's warm, but it's not excruciatingly hot. It's 26 degrees or so in Marseille, but it is from the previous heat

wave at the end of June and into the early parts of July that really set the stage for wildfire activity across the south of France.

Remember Copernicus, the climate monitoring agency from Europe, actually depicted this heat wave quite well, with some temperatures reaching as high

as 50 degrees across Spain and Portugal. Certainly, extreme heat felt across the southern portions of France near the mediterranean, right where

this wildfire has erupted.

Well, now, since we had that dried out vegetation from the extreme heat from last week's heat wave, we have what is called a mistral wind. This is

the local term for the northerly winds that wrap on the back side of the Alps and out and offshore into the northern mediterranean.

What this is, is actually a cool, very dry wind that helps dry out the vegetation near the coastline. You can see it with our wind forecast. It's

gusty here really from a northerly direction, anywhere from 30 to 40 kilometers per hour. So, if you get a spark with those dry conditions

already in place from the previous heat wave, it doesn't take much to fan more flames.

So, here's a look at the forecast going forward. We have warm temperatures in this outlook and they're just being really exacerbated by the extreme

marine heat wave still continuing across the mediterranean.

Back to you.

(END VIDEOTAPE)

NEWTON: Police in Spain say Liverpool footballer Diogo Jota has in fact was behind the wheel and likely speeding when his car crashed last week,

killing him and his younger brother. Jota and his brother Andre Silva died after their car came off a highway in northern Spain following a burst

tire. The car then went up in flames. Jota was only 28 and had just come off a career best season for Liverpool, helping guide them to the English

Premier League title.

Okay. Still to come for us, French President Emmanuel Macron's state visit to the U.K. How he spent the first day of his trip.

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[15:51:07]

NEWTON: French President Emmanuel Macron has kicked off a three-day state visit to the U.K. It's been a full day from a royal welcome at Windsor

Castle to a speech at parliament to an elaborate state banquet.

CNN's Melissa Bell has our details.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): A royal welcome for French President Emmanuel Macron. The first state visit by a

European leader since Brexit, with no pomp and circumstance spared, welcomed first by the Prince and Princess of Wales, then greeted by King

Charles and Queen Camilla, onto a procession through the streets of Windsor, along with the French First Lady Brigitte Macron.

The pageantry and the tone are stark contrast from the Brexit fallout that so tested the U.K.'s relations with its European neighbors.

EMMANUEL MACRON, FRENCH PRESIDENT: Amid these upheavals, the alliance between France and the United Kingdom has not faltered. It has even become

stronger. Yes, during the past few years, this alliance became stronger.

NEWTON: Speaking to parliament at the palace of Westminster's royal gallery, the French president vowed that together they would bring an end

to the wars in Ukraine and Gaza. Over the three-day visit, President Macron and U.K. Prime Minister Keir Starmer are also expected to address U.S.

tariff wars, post-Brexit trade and migration.

MACRON: We love monarchy, but especially when it's not at home.

NEWTON: Whilst much still divides them, there was also a reminder of their shared past and the suggestion from the French president that it might just

be time to lay their differences to rest.

Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

NEWTON: Finally, for us tonight, if someone contacts you claiming to be Marco Rubio -- yep, you guessed it, not him.

According to a U.S. diplomatic cable, an impersonator using artificial intelligence has managed to contact at least five people while pretending

to be the U.S. secretary of state. Those people get this include three foreign ministers, a member of Congress and the governor of a U.S. state.

Jennifer Hansler has been following this one for us from the State Department. Look, a little bit tongue in cheek here, but also alarming in a

way.

JENNIFER HANSLER, CNN STATE DEPARTMENT REPORTER: Yeah, Paula, there's definitely huge implications if someone were to actually believe they were

speaking with the U.S. secretary of state.

Now, this diplomatic cable goes into a lot of details of how this a person they don't know who it is yet was attempting to impersonate the top U.S.

diplomat. They said back in mid-June, they set up a signal account with the username marcorubio@state.gov. Of course not his actual email address.

And then they attempted to contact people through there. They said that the actor left voicemails on signal for at least two targeted individuals, and

in one instance sent a text message inviting the individual to communicate on Signal. The cable goes on to say that the actor likely aimed to

manipulate targeted individuals using A.I. generated text and voice messages, with the goal of gaining access to information or accounts.

Now this cable went out to tell people it went out to embassies and consulates around the world, last Thursday, telling folks there, you might

want to let partners know that there is this impersonation attempt happening where someone is pretending to be the secretary of state. The

cable said this is also not the only attempt at impersonation that has been happening at the State Department, Paula. They said, a separate Russian

linked actor has also been pretending to be affiliated with the State Department to try to get information.

Now, the State Department said they are investigating this. They are looking into the matter. State Department spokesperson Tammy Bruce would

not go into details about whether this actually had any impact, but she said they are taking their cybersecurity protocols seriously -- Paula.

[15:55:07]

NEWTON: I bet. Note to self, use more secure levels of communication here. Unbelievable.

Jennifer, thanks for bringing us the story.

And I am Paula Newton. That is what we know.

Stay with me. "QUEST MEANS BUSINESS" is up next.

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END

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