Major Companies’ Earnings Calls Reveal Impact Of Tariffs

23:49Hey Chicago, class it up with Crocs. You know back to school is coming in fast. So why wait to find your new fave footwear? Step into a local Crocs store and step into your new look. Try it. Style it. Make it yours. Because the right pair doesn't just show up, it shows off. First day fits, handled. Walk out ready for whatever's next. Visit your nearest Kroc store today. In our world lead, Israel's security captain has been beating for more than five hours now, and there is still no final decision announced on whether to endorse Prime Minister Netanyahu's call for Israeli forces to occupy all of Gaza.

24:32Netanyahu talked with Fox earlier today to explain his thinking. Will Israel take control of all of Gaza? We intend to, in order to assure our security, remove Hamas there, enable the population to be free of Gaza and to pass it to civilian governance. That is not Hamas and not anyone advocating the destruction of Israel. That's what we want to do. CNN's Matthew Chance is with us from Amman, Jordan. Matthew, what are you hearing about this ongoing debate about whether Israel should occupy all of Gaza? Well, first of all, that security cabinet meeting, Jake, is still underway. It's been going on, as you mentioned, for more than five hours.

25:18We don't know whether it's going to break up soon or whether it's going to go on through the night. But I think that's a reflection of just how divided not just the cabinet and the government, but the country at large, Israel, is about what to do about Gaza, about how, first and foremost, to get the hostages back. There are still 50 hostages, 20 of them still to be still believed to be alive. inside the Gaza Strip. And you've got elements on the right wing of Israeli politics that want the military to double down and for Hamas to be destroyed as a means of removing the threat but also getting the hostages back.

25:56But according to the latest opinion polls, the vast majority of Israelis want the opposite. They want a deal to be cut with Hamas as soon as possible as a sort of guarantee of getting as many hostages back alive as possible. And there's a great deal of concern and anger in the country that there's a possibility the war, which has drained the energy from the nation, from the reservists, from people in general, may continue now if Benjamin Netanyahu, the Israeli Prime Minister, gets his way and fulfills his intention to take full military control of the Gaza Strip. I mean, just very briefly that the 25 percent of Gaza that the Israelis don't fully control, that's where the majority of the Palestinian people are.

26:44And it's also believed to be where the majority of the hostages are. And so potentially their lives will be at risk with a further military operation. And Matthew, you're in Amman, Jordan, because you were able to ride along on a Jordanian airdrop of food to help those starving in Gaza. Tell us about that. Yeah, yeah. I mean, look, I mean, these have been going on for some time. It's Jordan that's carrying out these humanitarian aid drops. Germany, France, Belgium, a number of other countries are doing it as well. They've been pretty heavily criticised, actually, for being not very effective. They don't deliver anywhere near enough aid needed to address the humanitarian shortages in Gaza.

27:29They're also quite dangerous. People have been killed in Gaza when food parcels have dropped on top of them. And they're just seen as performative. you know symbolic more than more than practical but having said that given the acute shortages and the hunger crisis in gaza right now i mean we delivered six and a half tons of powdered milk and tinned food for some people in gaza that could mean the difference between life and death but i think the real value of us being on the plane today was that we were able to get a glimpse inside gaza and have a look from a bird's eye view, quite literally, you know, the sheer devastation that has been wrought across the Gaza Strip by almost two years now of a constant campaign by Israel against Hamas and other militant groups inside Gaza.

28:18And it was a really shocking scene. So much of it has been laid to waste. It's like a sort of moonscape, a desert of ruins, where there's still a lot of people, of course, increasingly struggling to survive. Jay. All right, Matthew Chance and Amman Jordan, thank you so much. With us now, Efraim Halevi, who, among other top security jobs, was once director of Israel's National Intelligence Agency, the Mossad, in the late 1990s and early 2000s. Thank you so much for joining us, sir. What is your reaction to what we're hearing today from Prime Minister Netanyahu that his government intends to take control of all of Gaza?

28:58I think the general sentiment of the Israelis, as you have heard just now, that a vast majority of Israelis do not wish this plan to come into fruition. As you know, the cabinet is now in session. They have not yet reached a finalization of what they're going to do. There's a very strong group of ministers in the cabinet who do not accept Mr. Natalyao's position and his policy. And what concerns us more is to get the hostages that are still alive back home, because for quite several months. There was no negotiation of any content and the Hamas simply dragged their feet. And as this was going on, obviously hostages probably were losing their lives.

30:07Yeah. You appear in a new video this week in which generations of Israel's former security chiefs say it's time to end the war. Do you think that this video that you participated in is making any difference with the Netanyahu government or with the Israeli citizens?

30:31I don't think it's making any real and practical steps by the Israeli government in this direction. But we are a group of people, all of us heads of services, and we've got together several months before because we believe that the dangers that we've confronted in Israel are not only Gaza, but also the internal crisis, the constitutional crisis in Israel. Israel. And it's very difficult for us as former heads of services to accept the methodology of Mr. Netanyahu, because we do not believe that, as he is wishing to do and actually practically doing, to change the Constitution of Israel. and one of the steps taken just a few days ago was the dismissal of the attorney general.

31:37And she has refused to accept this order of being actually removed from office, and this is up for the Supreme Court to decide this. This is only one way of looking at what is happening in Israel, which is not something that we have ever encountered before. We keep seeing, obviously, these images of dire conditions in Gaza, including malnourished, starving Palestinian children. Last week, the British newspaper, the Jewish Chronicle, reported that at a meeting of the UK's Board of Deputies, which is a leadership group of British Jews, as you know, attendees told the newspaper that the leader of the Board of Deputies, Phil Rosenberg, quote, said Israel was increasingly at risk of moving towards pariah state status in the international community.

32:32Obviously, Mr. Rosenberg is a big supporter of Israel. Do you share that concern? How worried are you about Israel becoming a pariah state? I don't think Israel will become a pariah state. What I do think is possible that the UN Assembly in September will decide to accept Palestine as a member of the United Nations. That is something which is on the agenda, which Israel opposes. But I think they have a vast majority that will vote for this move, unless the United States in the Security Council retails this. All right. Ephraim Halevi, thank you so much for your time today, sir. Really appreciate it.

33:23Thank you. President Trump reigniting his threat for the federal government to take control of Washington, D.C. But can he really do that? Can he? Can he? We'll explain next.

33:39Welcome to The Lead. I'm Jake Tapper. This hour, breaking news out of the White House, where President Trump just spoke with our Caitlin Collins about his potential meeting with Russian President Vladimir Putin. The Kremlin says this sit-down could happen within days, but where will it happen? What exactly will be on the agenda? Will cameras be present for the first meeting between a U.S. leader and Vladimir Putin since 2021? Plus, a federal judge has ordered construction to stop at the so-called Alligator Alcatraz Immigration Detention Center in Florida. We're going to break down the judge's reasoning and how long this pause could last ahead.

34:11Also, thousands of miles away from Israel, in the suburbs of St. Louis, Missouri. Police are investigating after multiple cars were set on fire and the words, Death to the IDF, the Israel Defense Forces, were spray-painted on the street. What we're learning about the perpetrator of what police are calling a potential hate crime.

34:36The lead tonight. Tonight, fractures are already forming between President Trump and his Russian counterpart, Vladimir Putin. When it comes to discussions about this potential upcoming meeting, and with Trump's deadline for more sanctions on Russia fast approaching if a ceasefire is not reached, Trump now says it's up to Putin. This comes after the Kremlin claimed preparations are already underway for a summit next weekend. Let's bring in CNN's Fred Pleitkin in Moscow and Chief White House Correspondent Caitlin Collins, who's standing by at the White House. Caitlin? Yeah, Jake, obviously notable comments from the president in the Oval Office just a few moments ago when we were in there about what the conditions or lack of conditions would need to be for this meeting to take place.

35:17One key question, given what the White House had raised yesterday when this news first broke, which is that we could potentially see President Trump and President Putin sit down and then see President Trump, President Putin and President Zelensky all three sit down together. The Kremlin seemed to cast some doubt on that prospect this morning of Putin and Zelensky actually coming face to face. And so we asked President Trump if he viewed this as a precondition that the Russian leader must agree to sit down with Ukraine's president in order for Putin to secure face time with President Trump. And this is what he told us inside the Oval Office.

35:52President Putin said this morning he was pretty dismissive of this idea of meeting with President Zelensky. President Putin was. I don't know. I didn't hear him. So for you to meet with him, he doesn't have to agree to meet with Zelensky. Is that what you're saying? No, he doesn't. No, No, no. So when do you think that meeting will happen? They would like to meet with me, and I'll do whatever I can to stop the killing. So last month, they lost 14 ,000 people killed last month. Every week is 4 ,000 or 5 ,000 people. So I don't like long waits. I think it's a shame. And they're mostly soldiers. They're Ukrainian and Russian soldiers.

36:26and some people from the cities where missiles are lobbed in and you'll lose 35, 40 people a night, which is terrible. But no, mostly it's soldiers. And you're talking about, on average, 20 ,000 a month. 20 ,000 people are dying a month. Young, generally young people, soldiers. So the president there at the end, Jake, repeating his long stated desire to bring this war to an end. The question is whether or not we are on an actual prospect and verge of something like that happening. If these two leaders do come face to face, what that actually means for this. Because obviously we've long heard from Russia experts who say Putin hasn't changed his war goals here.

37:08A key question, Jake, now is how Ukraine responds to that comment from President Trump. This notion that they don't believe Putin must sit down with Zelensky, a meeting that Zelensky has long sought and said he's prepared to have happen. That's a key question here of what this looks like. But Jake, it does seem to remove an obstacle here that if Putin is saying he's not really ready to meet with Zelensky, but Putin and Trump are prepared to meet, how quickly that could come together still remains to be seen. I can tell you they've been working on it urgently inside the White House as we're trying to figure out when that meeting could happen and also where, Jake.

37:40Yeah, fascinating stuff. And Kaylin, we should remind folks, Trump's deadline for a ceasefire before he pulls the trigger on those further sanctions against Russia, That's supposed to be tomorrow. Is President Trump planning on sticking with that deadline? It's not clear. We heard from some officials yesterday before it was announced that this meeting could potentially happen, saying that, yes, tomorrow's deadline for the secondary sanctions to go into place, if Russia could not bring this war to an end or get a ceasefire with Ukraine, was still in place. It seems to not be as clear when we've been talking to people today.

38:13The president himself was asked, and he said that remains up to Putin. But of course, the question is, what does the United States do come tomorrow if there is no ceasefire by then? And whether or not the prospect of this meeting with the Russian leader changes their calculus on putting those sanctions in place or if they move ahead with them, Jake. All right, Caitlin Collins of the White House. Thank you. And of course, don't miss Caitlin on her show this evening. The Source with Caitlin Collins tonight, every weeknight, nine o 'clock Eastern, only on CNN. Let's go to Moscow now, where Fred Pleikin is.

38:41And Putin is still reportedly keen to meet with Trump, Fred, though the Kremlin says he hasn't committed to a trilateral with Ukrainian President Zelensky. Fred, what further details are you hearing from the Kremlin about this? Yeah, the Russians are also saying the preparations for this summit are already well underway as far as the Russians are concerned. It was quite interesting because a senior Kremlin aide named Yuri Ushakov, he came out earlier today and he said that the venue had already been agreed upon between the White House and the Kremlin. but that the Russians were going to announce it at a later date.

39:12Vladimir Putin then seemed to say something different when he met the president of the United Arab Emirates today here in Moscow. He said that the UAE could potentially be a place where the summit could be held, but that it hadn't been decided yet. And also, just to what Caitlin was saying earlier, the Russians again did, Jake, today reiterate that they have not changed their stance as far as the Ukraine conflict is concerned. The Russians, of course, have been demanding that Ukraine essentially cede territory to Russia, that they also essentially all but disarm and not join NATO. Whereas President Trump, of course, has been saying what he wants is a ceasefire as fast as possible.

39:49So there could possibly be a disconnect there. And as far as that follow on meeting with Volodymyr Zelensky is concerned, we also got some interesting remarks from the Kremlin as well, where they were saying that that was brought up by Steve Witkoff, by the presidential envoy when he met with Vladimir Putin on Wednesday. But the Russians did not even answer to that proposal. Of course, Vladimir Putin came out earlier today and he said that, look, he's not against generally meeting with the Volodymyr Zelensky, but he said the conditions for that must be met and that things are still very far away from that.

40:23Jake, one of the things I think that's important to point out also is as far as the Russians are concerned, solving the Ukraine conflict to them is only one of the items that will be on the agenda. It's obviously an important one. But what we're hearing here from the Russians as well in Moscow is they're saying to them, they also want to see a full reset of U.S.-Russia relations, of course, also involving possible economic deals, trade deals, and of course, sanctions relief. That's something that they are also putting there into the foreground and saying that to them at such a summit, that will be important as well, Jake.

40:57All right. Fascinating stuff. Fred Pletkin in Moscow. Thanks so much. Let's talk to Dr. Kenneth Dekleva. He's a former regional medical officer and psychiatrist with the U.S. State Department. He spent five years at the U.S. Embassy in Moscow. Dr. Dekleva, thanks for joining us. So this meeting could be the first time a U.S. leader in Putin met in person since 2021. Who do you think has the upper hand going into this summit, President Trump or Putin? President Trump. And why do you think that? Well, I think President Trump is coming from a position of strength, and I commend his intuition and boldness in seeking this and the work of Steve Whitcoff.

41:35I think there have been recent signals sent, and both the Kremlin and the White House have used that language. But the signals sent by President Trump in the last several months have been noticed by Putin. The threats of sanctions, the threats of increasing arms to Ukraine with our European partners, sending the two nuclear submarines, deploying them in response to the very dangerous and threatening rhetoric by former President Medvedev, and the bombing of Iran, which shows that President Trump is decisive and willing to take controlled measures for deterrence. And he's seeking peace, as he mentioned in the comments you made earlier.

42:18The other key point is that he and President Putin will be meeting as equals. And the key point there is that's why President Putin will not, at this point, meet with President Zelensky, because he does not consider him a legitimate leader, nor does he consider Ukraine a legitimate country. So President Trump's goal here is to bring a total end to the war. You heard him speaking, you know, rather movingly about the fact that, like, there's just loss of life after loss of life. 5 ,000 this week, 14 ,000 the next week. That's a campaign promise of him. But Putin is, you know, I think it's, there are those who don't think he's a rational actor.

42:58And he's been ramping up attacks on Ukraine in recent months. So much is at stake at this conference. What is Putin's strategy in this meeting? Do you think there's really any hope for peace? yes putin is actually a rational actor he's shown at times such as the hostage releases last year the largest hostage swap since the since the cold war that he can be negotiated with but unfortunately he's also very ruthless he's very resilient and he operates like a trained kgb officer with maximalist goals but what putin wants is to be seen in as an equal and treated with respect. I do think Putin respects President Trump at his level.

43:45And I think that's an important thing, that they have some sort of chemistry where they can begin conversations. But President Trump really should walk away with deliverables, such as a ceasefire and a release of the Ukrainian children who have been held hostage for many, many years. And Trump should follow his own agenda in the art of the deal, which is if you don't get what you want, sometimes you have to walk. So Putin has already said that certain conditions have to be met in order for him to agree to a meeting with President Zelensky. Trump now saying it's not necessary for him, for Trump, for Putin to meet with Zelensky.

44:27Do you think that's a mistake? Because obviously, if Putin is allowed to, you know, flaunt his disrespect and disregard for Zelensky, who was democratically elected, and his disregard and disrespect for the existence of Ukraine. I mean, that's not a great starting off point. It's not a mistake, but it's a very difficult choice that President Trump has to make in order to get negotiations started. And I think, I think, as President Putin hinted, the devil is in the details in the later negotiations that would follow a ceasefire. And I think at the time when there's a comprehensive agreement, of course, he and President Zelensky would meet.

45:07But my guess is the United States and our partners and others would be acting as intermediaries between the Kremlin and the Ukrainian President Zelensky. Yeah. All right. The other key factor. Go ahead. The other key factor is the role of a new pope, Pope Leo, who's an American-born pope, who's spoken of his desire for peace. And shortly after he was elected as pope, Vice President Vance and Secretary of State Rubio, who were both Catholic, met with him. I think President Trump could utilize a new holy alliance, as President Reagan did in the 80s, which led to the downfall of the Soviet Union.

45:49That should worry President Putin because there's a lot of diplomatic negotiating power in an alliance with the Pope to seek peace in Ukraine and also in Gaza. Interesting stuff. Dr. Kenneth DeKleva, thank you so much. Appreciate your insights today, sir. Thank you for having me, Jake. The new ruling this afternoon that is temporarily stopping construction at that controversial immigration detention center down in Florida, dubbed Alligator Alcatraz. Stay with us.

46:26This podcast is supported by Anthropic, the public benefit corporation behind Claude. Everyone's got a hard question about AI, your job, your kids, where it's going. Anthropic was built to surface those questions and share what it finds along the way, because there's hope in hard questions. Ask yours at claude.ai slash Spotify and keep thinking. That's claude.ai slash Spotify.

47:15It shows off. First day fits, handled. Walk out ready for whatever's next. Visit your nearest Croc store today.

47:27Our national lead now, a federal judge today, ordered a temporary halt to the construction at what is called the Alligator Alcatraz Immigration Detention Center in the Florida Everglades. The Associated Press reports that the facility is allowed to continue to operate and hold detainees, but workers will be barred from adding any new filling or paving or infrastructure for the next 14 days as attorneys argue whether the facility violates environmental laws. It is in the Everglades. Trump Border Advisor Tom Holman visited Alligator Alcatraz this week. He dismissed any reports of inhumane conditions at the facility.

48:01Bunch of crap. I was there. I walked through the detainee facilities. I walked through the medical facilities. I walked through the cafeteria. I had him show me, what did you feed these people today? I saw the lunch where they fed them. They ate better yesterday than I am eating today. CNN's Priscilla Alvarez is here. So alligator Alcatraz seems to be generating one controversy after the other. And we've been reporting on those conditions that Tom Homan was referencing there. But this lawsuit in particular didn't really touch on the conditions inside the facility for the migrants. Instead, it stemmed from environmental concerns filed by environmental groups.

48:39essentially them saying that this facility puts at risk the wetlands and arguing that when they constructed this facility, they didn't follow environmental law and they didn't examine the impact it would have on the environment. For those reasons, the federal judge in this order said they cannot continue expanding this facility for the next two weeks as this case is ongoing. This is important because Florida is consistently trying to expand this facility. They already have hundreds of detainees who are there and they want to get to up to 5 ,000. So there has been ongoing construction of this facility, a facility, by the way, that not only the White House borders are visited, but for the president himself, President Trump with his officials went to the facility a few weeks ago to see it, to tout it.

49:24And what we have seen in the weeks since is the Trump administration trying to find other states willing to do what Florida did with Alligator Alcatraz. So this is certainly not going away as this case continues, but for now they just can't expand the facility. And this also comes on the heels of a new and different immigration enforcement controversy, this one in Los Angeles. It's an operation dubbed Trojan Horse, where Customs and Border Protection agents, CPB officials, are hiding in the back of a rental truck. They jumped out, took 16 people into custody during a Wednesday raid in the parking lot of a Home Depot.

49:58You have pictures of what happened? Yeah, and you're seeing them there on your screen. These are U.S. Border Patrol agents. They have been involved in the immigration enforcement operations in Los Angeles. And in this case, as you mentioned, it's called Operation Trojan Horse because they hit themselves in a moving truck. And then they unloaded and scattered in a Home Depot parking lot in Los Angeles where they arrested 16 people. The Department of Homeland Security calling this, quote, a targeted raid. Well, it's not sitting well with the Los Angeles mayor who has been the face of the opposition when it comes to the operations there.

50:31Take a listen to what she had to say. It is hard for me to believe that that raid was consistent with the court order that said you cannot racially profile. You cannot racially discriminate. What I saw on the video, what I saw on the pictures that were sent to me looked like the same guys chasing people through a Home Depot. This is something that is not acceptable and we are not going to stand for it in Los Angeles. Now, the court order that the mayor was referencing there is one that blocked the Trump administration from indiscriminately arresting and conducting these immigration raids in Los Angeles.

51:12So this is likely to come up in that court case. Penske, the company of the moving truck, also reacting to this thing. They were not made aware that their truck was going to be used. But again, this is the epicenter of the aggressive enforcement operations and ones that are continuing to happen. And presumably the any undocumented immigrants that were in that parking lot were day laborers looking for work, which happens all over the country. Yes, that's correct. OK, Priscilla Alvarez, thanks so much. With us now is Democratic Senator Richard Blumenthal of Connecticut. He is on the Homeland Security Committee of the Senate.

51:43Senator, first of all, what do you make of this Operation Trojan Horse? It is a Trojan Horse operation that may involve entrapment, violation of the Constitution, and as was mentioned by Mayor Bass, also potentially a violation of the court order. But it involves a question of fundamental fairness. is here's a government agency luring people who are seeking work with a Penske truck and a straw hat on the dashboard, and then ICE agents coming out of the truck, bundling out of the truck, and then seizing these people who may be fully documented. They have no probable cause to arrest them. So there are serious legal questions involved here.

52:31Let's talk about this immigration case in your home state of Connecticut that's also drawing some national attention. A man whom we're going to call Zia, he's an Afghan. He served as an interpreter for the U.S. military during the war. He was picked up by ICE agents last month, even though he had an approved application for a special immigrant visa or CIV and a pending green card application. You met with him. You met with Zia this week. Tell us about it. I met with him yesterday at a prison. It's called a detention facility, but it's a prison with cells. And he is allowed out of those cells only for limited times.

53:09It is truly incarceration. And there is no reason for it. He has done everything right. He worked for this country as a translator for a number of years, risking his life. Not only did he act as an aide to our troops, putting his life on the line, but also his cousins and his brother did so as well, his whole family. And then he was assured, promised by the United States government, that he could be in the United States safely if it was ever necessary. Jake, I've been involved in this cause for literally years. I went to the White House before we withdrew from Afghanistan. I said, you need to do something for our at-risk allies in the event that the Taliban take over, because they're going to have targets on their back.

53:58And in fact, his brother was tortured. And now he's been arrested without any cause here. He's doing everything right. So Zia's wife and five children were also allowed into the U.S. under the special program to resettle folks who helped the U.S. in Afghanistan. in the special immigrant visa or civ program. What's happening with them? His wife and five children were allowed into the United States, and they are now living in Connecticut. He calls them every day. His children are crying. But let's remember that the United States will never be able to use allies like him in other countries in the event that we put our troops in harm's way because if we break our promise now, we have no credibility with those allies who may assist us and then have targets on their back.

54:53You're also on the Senate Armed Services Committee, and I want to get your take on the fact that it looks like President Trump and Russian President Vladimir Putin might meet soon, perhaps as soon as next week, to discuss the Ukraine war. Our viewers can see you have a U.S.-Ukraine flag pin on your lapel. What are your hopes for that meeting? Do you have any concerns that President Trump said earlier today that it is not a precondition of the meeting that Putin meet with Zelensky? I'm deeply concerned and worried about this meeting. You know, the one-on-one meetings between Putin and Trump have never ended well for the United States.

55:33They may feed Trump's vanity. But in fact, my concern is that Trump will make concessions. He seems to have been much tougher on Putin, abandoning the bromance that was ongoing. And I welcomed his statement that there would be sanctions literally tomorrow if Putin did not agree to a ceasefire. Well, he hasn't agreed to a ceasefire. I want to see those 100 percent sanctions. I have a bill with Senator Graham. Our Graham Blumenthal bill would impose bone crushing sanctions on the Chinese, the Indians, the Brazilians, if they continue buying oil and gas from Russia and stop them from fueling his war economy.

56:20I would welcome President Trump's strong, unequivocal support for that bill. And I'm very worried that he's going into this meeting and potentially abandoning sanctions that he would impose by executive order. Our bill has the great advantage of showing unity and support for him and what he should be doing in imposing sanctions and providing more military aid to Ukraine because our national security is involved. Putin will keep going. He'll go against Poland, Romania, the Baltic states, Finland, Sweden, if he's not stopped in Ukraine. All right, Democratic Senator Richard Blumenthal of Connecticut, thank you so much, sir.

56:58Appreciate it. Thank you. President Trump signed a new executive order today that targets race-based admissions at universities in the U.S. What does this executive action really mean? What kind of an impact will it have? We're going to break it down next.

57:16Our politics lead now. This afternoon, President Trump took executive action targeting universities over race-based admissions. The move essentially expands the type of admissions data that universities have to give over to the federal government. CNN's Betsy Klein joins us. And Betsy, the White House says this is going to help them verify whether colleges are obeying the 2023 U.S. Supreme Court decision, which ended race-based affirmative action. What else is in this presidential memorandum? That's right, Jake. You'll recall that back in 2023, the Supreme Court ruled that colleges and universities cannot take race into account in their admissions processes.

57:53And the Trump administration is now essentially saying, show your work. So President Trump taking executive action today to expand the type of admissions data given to the federal government from colleges and universities. This is something the White House says is aimed at boosting transparency. But Trump is directing Education Secretary Linda McMahon to revamp a longtime online U.S. higher ed database, which collects information on things like tuition and fees, admissions, considerations, enrollment and financial aid. But a senior White House official says that universities just aren't doing enough to prove that they are abiding by that landmark Supreme Court decision, telling us in a statement, quote, the lack of available admissions data from universities paired with the rampant use of diversity statements and other overt and hidden racial proxies continues to raise concerns about whether race is actually used in admissions decisions in practice.

58:44Now, this all comes as part of a broader push for policy changes at universities, particularly over diversity, equity and inclusion policies. And we're seeing this play out in a lot of different ways with Harvard University, which is engaged in a pair of lawsuits with the Trump administration, as well as Columbia and Brown, which both struck multimillion dollar deals with the administration in recent weeks. But if you read Columbia's agreement, it actually includes a provision that requires the school to provide data on both rejected and admitted students broken down by race, color, GPA and standardized test performance.

59:16So this executive action, Jake, appears to codify that for all other institutions receiving federal funding. All right, Betsy Klein. Interesting stuff. Thank you. Let's talk about this with Tom Dupree, former principal deputy assistant attorney general in the George W. Bush administration. Tom, I assume that what the Trump administration is doing here is legal? Well, certainly it's legal to the extent that they are trying to enforce what the Supreme Court said, that colleges and universities can't discriminate on the basis of race, no race-based affirmative action. So at a 30 ,000-foot level, to the extent they are trying to ensure compliance with what the Supreme Court says the Constitution requires, that's a legitimate goal.

59:51Where I think things are going to get really interesting is if and when this data is produced, what the administration deems evidence of race-based discrimination. And if they find race-based discrimination, what they do about it. I think that's the question that will be answered in the months and the years to come. Today's decision or today's order basically codifies, as Betsy reported, the deals that they have already struck with some universities about producing this information. So what are they going to be looking for? I mean, obviously, universities take a whole bunch of factors into account when they admit a student, especially competitive universities.

1:00:25and there might be socioeconomic diversity, there might be geographical diversity, there might be experiential diversity that might have similarities to racial diversity but are not picking somebody out because they are a certain race. And that's what makes it such a complex enterprise is that you do have all sorts of variables, some but not all of which correlate with race. And I think what the administration is going to be doing is trying to figure out whether or not any of these variables that the colleges and universities are taking into account are basically being used improperly as a proxy for making covert race-based decisions, which they're not allowed to do.

1:01:04But how do you prove that? I mean, let's say I'm a dean of admissions and there's a qualified kid. And look, qualified could be anything, right? It could be somebody who has B's and a 1100 SAT. and the kid is from Compton, right? And I don't know what the race of the kid is, but I could probably take a guess, right? Or somebody who lives on a Native American reservation in Colorado, et cetera. Like they might be great prospects and I don't know, but I have an idea of the race. Right, and again, that's what makes this so difficult. I think what the administration is going to be looking at is trying to make these assessments that would the same admissions decisions be made if you were to make everything race neutral.

1:01:46If you took race completely out of the equation and you made admissions decisions based on this application file, would you reach the same decision in the case of an applicant who happens to be white versus an applicant who happens to be black or Hispanic? It's a hard thing to do. And it's, I think, something that, you know, the lawyers and the Justice Department, whoever's gonna be reviewing this, are probably gonna have a lot of internal debates about whether these admissions structures are permissible under the Supreme Court's decision. Do you think any universities, given what's going on and the tenor of the relationships that the administration has with higher education might challenge this in court?

1:02:21Is there a legal recourse for, I'm just going to make it up, the university of, there's no such thing as a University of Philadelphia, so I'm just going to say that. The University of Philadelphia says, no, you can't look at our data. They could certainly push back. I mean, the federal government does have a right to get some type of information, and colleges and universities already provide a fair amount of information. In fact, many of them make public some of these statistics. In other words, the racial composition of an entering class is something that colleges and universities often disclose.

1:02:46I might see, you could see some colleges and universities trying to push back a little bit, but you could also see them saying, look, you know, we're not ashamed. We don't think we're violating the Constitution. We're happy to share our information with you. Although that, of course, is going to kick the can down the road, because there may come a day when the administration looks at the information they produce and says, hey, we don't think you're following the law here. But the U.S. Supreme Court, just to be clear, they said that you cannot use race-based affirmative action as the sole criteria, or they said race can't be a factor at all?

1:03:16Well, they said you can't really use it to make generalized decisions. In other words, that you couldn't say we're going to apply a different standard for white applicants versus black applicants. But the chief justice at the end of his opinion did leave the door slightly ajar where he said that an applicant could write, for example, an essay talking about his or her race and about how it gave him some life experience that would have some relevance to the college admissions decision. So they're not saying that you can't have any mention of race in an admissions decision, but it just cannot be based on a generalized stereotype or observation.

1:03:47That's complicated stuff, right? That's why you need lawyers. Yeah, but it's not as easy as you can't do it anymore. That's correct. Because people want diversity in all things. All right. Tom Dupree, thanks so much. The Justice Department says a family was targeted in a recent anti-Semitic attack in Missouri. What investigators are revealing about this crime? That story is next.

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1:05:12Our national aid now, several cars were set on fire, and death to the IDF, the Israel Defense Forces, was spray painted on the street of a St. Louis suburb. Police are investigating the incident as a hate crime and Josh Campbell's covering this for us. Josh, do we know who the intended target of this alleged hate crime was? We don't have a name, but we are learning what the characteristics are of the people that were actually targeted. This happened on Tuesday near St. Louis just after 3 a.m. Authorities responded to reports of multiple vehicles that were set on fire. Now, in a social media post from a senior U.S.

1:05:46Justice Department official, I'll read part of that statement. He says that an American citizen who served in the IDF returned to his family home soon after he and his family were targeted. He said he reviewed graphic footage of vehicles belonging to the family and their friends. The vehicles were set on fire and destroyed. As you mentioned, Jake, the words death to the IDF sprayed outside the residence. Now, authorities have not released any information on a possible suspect. That remains under investigation, but we are hearing from neighbors of the family allegedly targeted, and they're expressing shock.

1:06:16Have a listen. It's really a sad situation. I don't know how they, how we get beyond all this. Anti-Semitic incidents of, they seem to be, you know, all over the place. It's a lovely community. That doesn't make it obviously immune from people doing hateful things. Now, police say this incident is being investigated as a hate crime. And yet it comes, Jake, the same week the FBI released annual crime data, specifically hate crimes. As you know, we've talked about anti-Semitism has surged in this country following the October 7th attack on Israel by Hamas. The FBI says that of all the religiously motivated incidents reported to law enforcement last year, 70 percent, Jake, involved reported anti-Jewish hate crimes.

1:07:04And on that subject, Josh, this morning we learned that the man accused of killing those two Israeli embassy staffers outside the Capitol Jewish Museum at an American Jewish Committee event, he was indicted on federal hate crime and murder charges. We learned that today. He could face a death penalty. Tell us more. That's right. The big news, he has been indicted by a federal grand jury on those very serious charges, accused of killing Yaron Lashinsky and Sarah Milgram. We got some details about what occurred. This is Grim, Jake. We're told by prosecutors that he was seen on surveillance video approaching the two victims as they were leaving this event.

1:07:45He allegedly fired on them and continued to fire as they were on the ground. Really, really, truly awful story, Jake. The suspect here has not yet entered a plea, but he remains in federal custody. And he was yelling, free Palestine, as I recall. Josh Campbell, thanks so much. Appreciate it. Our small business series takes us to the heartland next, where a Wisconsin company has seen a drop in demand because of Trump's tariffs. How are they making up for the lost business? That next.

1:08:15With President Trump's new tariffs now in effect around the world, it's time to check in again with our business leaders. That's the series where we talk to small business owners from coast to coast to see how the tariffs are affecting them directly. Wisconsin Aluminum Foundry, or WAF, is a fifth-generation family-owned company in Manitowoc, Wisconsin. With other locations throughout the Midwest, the company produces custom aluminum castings for engine parts and medical equipment, for satellites and much more. And the CEO, Sachin Shivaram, joins me now. Sachin, thanks so much for joining us. So the president increased tariffs on aluminum and steel imports back in June, all the way up to 50%.

1:08:58How did that change aluminum pricing for you? How did that change how your company does business? Yeah, people always ask us, hey, you should be helped by these tariffs. And maybe eventually they will, but one of the things people don't understand about aluminum is that we start with aluminum to begin with. We have to import aluminum from Canada, from Iceland, from the Middle East, because it's so energy intensive to make. It's really not economically in the United States. And so we import most of what we use and now the cost of that have risen more than 50%. So obviously one of the goals for President Trump's tariffs is to bring this manufacturing to the United States.

1:09:40Why is it not economic to make the aluminum itself in the United States? You say it's energy intensive. Explain that for us. Yeah, I mean, we just don't have the electricity cost in the United States to be able to do that. And if in the future we're able to increase our electricity production, I'd imagine we have much better uses for that data centers and things than the production of aluminum. Generally in the world today, aluminum is made very close to sources of ultra-low-cost energy. So Trinidad and Tobago, Canada, Iceland, the Middle East, where frankly they don't have other better uses, manufacturing uses for it, And they direct that electricity to, you know, highly energy intensive collection of primary aluminum.

1:10:25OK, that makes sense. So if I can explain. Yeah. Go. Yeah. Well, so manufacturers like us, we buy primary aluminum, we remelt it and then we make it into these custom parts. So, you know, when we think about the tariffs, what it's doing is out of the gate, it's increasing our costs. And so, you know, just last week I wrote an article about this. We lost an order to a Canadian competitor who is now starting out with aluminum costs that is less than, you know, or more than 50 percent cheaper than what we're starting out with. And so the tariffs have actually created a competitive disadvantage for us.

1:11:01And how have you seen customer demand change since the tariffs went into effect? Well, I mean, this is exactly the thing that, you know, I think there was a great article this morning in the Wall Street Journal about it. I mean, manufacturing demand has kind of fallen off a cliff since the day the tariffs were announced. I mean, Q1 was great. Q2 has been a disaster. You know, we made a$25 million investment over the past couple of years. That's what's right behind me. And, you know, our production is way down. I'm here in our factory during second shift. Our employment could be higher by, you know, 60, 70 percent.

1:11:35But we just don't have the order. If President Trump were listening right now, what would you say to him about the tariffs? I would say, you know, first we need to talk to business owners about what can actually help us. Tariffs can definitely help. But the way the rollout has been has been chaotic and not actually incorporating our voices. So I urge them to sit down with our trade associations, the National Association of Manufacturers, other groups. And then, you know, we need to think of a strategy that has permanency. So, you know, maybe supported by some legislative outcomes. And that's clear.

1:12:10You know, today it's just unclear what the policy is, highly uncertain, and nobody is making investments on the business of that. All right, Sachin Shveram, the business is Wisconsin Aluminum Foundry, locations in Manitowoc across the Midwest. Thank you so much, sir. Appreciate your time. Thank you for having me, Bill. Moving ceremony held at the White House this afternoon to recognize nearly 100 Purple Heart recipients, service members wounded and some of them killed in action. Stay with us.

1:12:45Today is National Purple Heart Day, a day to honor and remember the service members who were wounded in action or killed in action while serving in the U.S. military. Since its creation by none other than George Washington in 1782, nearly two million Purple Hearts have been awarded. Just moments ago, President Trump honored 100 Purple Heart recipients at the White House. Those who wear this mantle ran into bullets, faced ferocious bombs and shed their blood on the field of battle. We will never forget what they did. Our thanks to all those men and women for their service and sacrifice. In our world lead, the U.S.

1:13:22is deepening its security ties with Ecuador, signing a new agreement that seeks to share intelligence and combat cross-border crime. This comes as Ecuador now battles the highest murder rate in all of Latin America. Gang violence, cocaine trafficking, migration pressure, and one infamous kingpin recently extradited to the United States. This Sunday, on The Whole Story with Anderson Cooper, CNN's David Culver gets rare access inside a country in crisis. Ecuador is not a cocaine producer. And yet the blood spills here. Cocaine is flooding into these streets. And with it, an explosion of brutality.

1:14:02You might think you know this story. Gangs, drugs, corruption. But what we find here may surprise you. Because this isn't just about cocaine. It's about a system. One that pulls in the poor, empowers the brutal, and protects the powerful. Oh my gosh. There's blood on the ground. Careful with your step here. To understand Ecuador's unraveling, we follow the chain to see who moves, who profits, and who pays. David, in that clip, you said you made some surprising discoveries. What's a misconception that our viewers might have about narcotics in Ecuador? Well, when I think folks reference a country like Ecuador and they see that roughly 70 % of the world's cocaine moves through Ecuador, you think perhaps it originates there.

1:14:50I mean, it's pouring into Ecuador from places like Colombia in the north, Peru in the south. And Ecuador has essentially become this massive transit hub, Jake. And you look at it, it's going out through fishing boats into cargo ships where they're being put into the containers and even into massive exports like bananas. And so when you see then that the drugs are moving through at this rate and this scale like we were able to map out in this documentary that really is something we have never really seen before, it shocks you. And it also shows you how it's fueling the violence and the corruption.

1:15:23And I think more and more folks, as they watch this story, will get a sense of just how involved the U.S. is now getting and why it may be increasingly so. What are you hoping viewers are going to take away from your reporting Sunday night? I think people will look at a story like this and at first they may read the headline, Jake, and they'll say it's their problem, right? That's something that's happening far south of us. Why should we care about it? But then as we map it out, you begin to realize it's not just Ecuador's problem. It is bleeding across the borders here, and it is rapidly moving north.

1:15:54I mean, these drugs themselves are obviously moving to places like the U.S. and into Europe. But then when you think about the wider scale of the chaos and the crisis, it's impacting U.S. security. And that's why we're now seeing that there's increased talk that the U.S. could at some point once again deploy troops to Ecuador. Now, we've seen President Noboa, and if you go back to even President Trump's inauguration, President Noboa was front and center, Jake, looking at President Trump during that moment. And so it shows you that there are increased ties and we may see that relationship turn into a deployment at some point.

1:16:27All right, David Culver, thanks so much. You can catch all of David's reporting on the Narco Superhighway this Sunday at 9 p.m. Eastern in a special edition of The Whole Story with Anderson Cooper. If you ever miss an episode of The Lead, you can listen to the show from whence you get your podcasts. Aaron Burnett Out Front starts right now.

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