BREAKING … ABC NEWS’ GEORGE STEPHANOPOULOS SPOKE TO MICHAEL COHEN: “Michael Cohen says family and country, not President Trump, is his ‘first loyalty'”: “When I asked Cohen directly what he would do if prosecutors forced him to choose between protecting the president and protecting his family, he said his family is ‘my first priority.’

“Cohen added: ‘Once I understand what charges might be filed against me, if any at all, I will defer to my new counsel, Guy Petrillo, for guidance.’

Story Continued Below

“But when I pointed out to Cohen that he wasn’t repeating past vows to ‘take a bullet’ and ‘do anything’ to protect the president, the longtime Trump loyalist left little doubt about where he stands now, saying simply: ‘To be crystal clear, my wife, my daughter and my son, and this country have my first loyalty.’ …

“When I asked Cohen how he might respond if the president or his legal team come after him — to try and discredit him and the work he did for Mr. Trump over the last decade — he sat up straight. His voice gained strength.

“‘I will not be a punching bag as part of anyone’s defense strategy,’ he said emphatically. ‘I am not a villain of this story, and I will not allow others to try to depict me that way.’ …

“I asked Cohen if the president directed him to make that payment or promised to reimburse him. In the past, Cohen has said that he acted on his own initiative.

“Not this time. ‘I want to answer. One day I will answer,’ he said. ‘But for now, I can’t comment further on advice of my counsel.'”

THE TICK TOCK … L.A. TIMES: “Late Saturday night meeting with Magic Johnson sealed LeBron James’ decision to accept Lakers offer”

WELCOME TO JULY 4TH week. Playbook is coming out a bit later this week, so we can get a few hours of additional sleep. Thanks for bearing with us.

— HOT WEATHER TODAY, via Capital Weather Gang: “Hazy, hot and humid. If your morning commute requires much walking, you may feel like you need a shower by the time you get to work. Highs reach the mid- to upper 90s, and factoring in high humidity (dew points 70-74 degrees), it will feel like 100 to 105 this afternoon. There’s little breeze to take much of the edge off the heat, blowing from the south just at around 5 mph.”

WAPO’S HEATHER LONG: “This week will be a critical test of Trump’s resolve as Canada on Sunday imposed tariffs on $12.6 billion of U.S. products and China is set to levy high tariffs on $34 billion worth of American goods, including soybeans, on Friday, the same day that Trump plans to tax an additional $34 billion worth of Chinese items. …

“Trump is now engaged in trade fights with most of the world’s major economies, including China, the European Union and Japan. Although Trump speaks periodically with leaders from these nations, formal trade talks have stalled with most of them as the two sides remain far apart and foreign countries say Trump’s wishes are unclear.”

— AP/OTTAWA: “Some U.S. products, mostly steel and iron, face 25% tariffs, the same penalty the United States slapped on imported steel at the end of May. Other U.S. imports, from ketchup to pizza to dishwasher detergent, will face a 10% tariff at the Canadian border, the same as America’s tax on imported aluminum.”

AMLO IS MEXICO’S NEW PRESIDENT … WAPO’S JOSH PARTLOW in MEXICO CITY: “Andrés Manuel López Obrador wins Mexican presidential race”: “López Obrador triumphed with a party that didn’t exist at the time of the last election, against opponents from two parties that have ruled Mexico for nearly a century. The 64-year-old former mayor of Mexico City promises to bring his humble lifestyle and distaste for luxury to the top of a political establishment famous for self-enrichment.

“An official ‘quick count’ from a national sampling of ballots forecast that López Obrador would win with between 53 percent and 53.8 percent of the vote, according to the national electoral agency. That put him far ahead of his main opponents, Ricardo Anaya and José Antonio Meade, who conceded and offered their congratulations. …

“President Trump loomed in the background of this vote. He was not a wedge issue in the election — all candidates opposed his immigration and trade policies and his anti-Mexican rhetoric — but the new Mexican president will have to manage cross-border relations that are unusually fraught. …

“López Obrador’s critics warn that he will be more combative toward the United States than the current president, and that the U.S.-Mexico conflict could drastically escalate if he chooses to fight with Trump. In prior years, López Obrador was a critic of the North American Free Trade Agreement, or NAFTA, but he and his team have insisted they want to preserve it and maintain good relations with Trump.”

— WSJ’S WILLIAM MAULDIN and SANTIAGO PEREZ: “Mexican Election Could Accelerate Nafta Talks: New president-elect’s approach is expected to ease the path for renegotiating the trade alliance with Trump administration”: “Efforts to overhaul the pact had floundered in recent weeks, amid missed deadlines and concern among many observers and participants that Mexico’s shift to a leftist-nationalist government could complicate negotiations.

“[T]he election of Andrés Manuel López Obrador may instead pave the way for at least some progress on the negotiations, according to trade negotiators and other observers. While U.S. businesses have concerns about Mr. López Obrador, the Trump administration’s approach to Nafta appears to dovetail with at least some of Mr. López Obrador’s economic priorities.

“One big example: Mr. López Obrador has signaled his administration will be more receptive to Washington’s push to raise labor standards in Mexico—a key goal of both President Donald Trump and Democratic lawmakers in Washington—than had been the government of outgoing President Enrique Pena Nieto, according to a U.S. congressional aide briefed on the talks.”

KASIE HUNT spoke with MITT ROMNEY on MSNBC’S “KASIE DC”: HUNT: “Will you vote for [Trump] in 2020? You said you think he’s going to get re-elected.”

ROMNEY: “It – it’s too early to say who I will support. Yes, I did say I think he’ll get reelected. That’s not an endorsement. I mean I – I also think that Gavin Newsom will get elected in California. That’s not something I want to see, that’s just something that’s probably going to happen.” …

HUNT: “But you’re not yet willing to say that you’ll vote for him?” ROMNEY: “I’m not willing to say who I’m going to support at this stage. That’s a little early for that, but the time will come.”

****** A message from the U.S. Chamber of Commerce: Trade works. Tariffs don’t. Tariffs raise costs and reduce exports. All of which means fewer jobs. See how hard your state will be hit at ******

WHAT TRADE WAR? “Exclusive: A leaked Trump bill to blow up the WTO,” by Axios’ Jonathan Swan: “Axios has obtained a leaked draft of a Trump administration bill — ordered by the president himself — that would declare America’s abandonment of fundamental World Trade Organization rules. …

“The draft legislation is stunning. The bill essentially provides Trump a license to raise U.S. tariffs at will, without congressional consent and international rules be damned. … The bill, titled the ‘United States Fair and Reciprocal Tariff Act,’ would give Trump unilateral power to ignore the two most basic principles of the WTO and negotiate one-on-one with any country …

“‘It would be the equivalent of walking away from the WTO and our commitments there without us actually notifying our withdrawal,’ said a source familiar with the bill. ‘The good news is Congress would never give this authority to the president,’ the source added, describing the bill as ‘insane.’ ‘It’s not implementable at the border,’ given it would create potentially tens of thousands of new tariff rates on products. ‘And it would completely remove us from the set of global trade rules.’” With the full text of the draft bill

— THIS IS NOTHING MORE than a Trump dream. This is so far fetched it wouldn’t even reach anyone with any decision-making authority in the Capitol. It is, however, worth knowing that the White House employs someone so detached from reality that they took time to put this on paper.

WSJ’S BENJAMIN MULLIN: “Quartz to Be Bought by Japan’s Uzabase for as Much as $110 Million”: “Quartz, the online business-news startup founded by Atlantic Media nearly six years ago, is getting a new parent: Uzabase Inc. The Japanese financial intelligence and media firm, a relative unknown in the U.S., will pay between $75 million and $110 million for Quartz in cash and stock, tied to the site hitting certain financial goals. The deal will strengthen Uzabase’s U.S. foothold as it seeks growth outside Asia. …

“Quartz, which has 215 employees and reached 12 million U.S. readers in May, according to comScore, built a following with its nontraditional approach to business-news coverage. With an eye on the global nature of commerce, the New York-based publication assigned reporters to cover ‘obsessions’—beats that often cut across topic areas. It was among the first digital news companies to embrace large native advertisements, or ads that fit into the overall format and feel of a page or app.”

— FROM DAVID BRADLEY’S MEMO: “[B]y the time I am 70 (five years from now), we will have divested our media properties. That would be, for me, 25 years in and around journalism. To leave altogether, if that’s what I do, will be hard; I have loved this work. Where I am caught by surprise is in the timing.

“After selling the majority of The Atlantic to Emerson Collective, I had thought it would be a few years before we launched the search for a Quartz buyer. In fact, all of this — my partnership with Emerson on The Atlantic and the sale of Quartz—is coming years faster than I had imagined.” The full memo

DARREN SAMUELSOHN and JASON SCHWARTZ: “Meet the Mueller pundits”: “President Donald Trump may be giving his current suite of Justice Department staffers a hard time. But he’s been a big boon for those who have left.

“Cable news networks are clamoring to fill their sets with expert talking heads who can explain and opine on every whiff of movement in special counsel Robert Mueller’s Russia investigation, leading to five or even six-figure salaries for some former federal prosecutors who’ve signed on as exclusive pundits. Others see a personal branding opportunity and do it for free.

“‘As a former U.S. attorney, you think you’re supposed to quietly fade into private practice,’ said Joyce Vance, a former U.S. attorney from the Northern District of Alabama who recently signed an MSNBC contract. ‘I consider this a form of ongoing public service.’”

FOR YOUR RADAR — “Behind the secret U.S. war in Africa,” by Wesley Morgan: “American special operations teams are playing a more direct role in military actions against suspected terrorists in Africa than the Pentagon has publicly acknowledged, planning and participating in combat raids by African troops in multiple countries including Somalia, Kenya, Tunisia and Niger, under a set of classified programs.

“In repeated public statements, military spokespeople have said the American role in Africa is limited to ‘advising and assisting’ other militaries. But for at least five years, Green Berets, Navy SEALs and other commandos operating under a little-understood authority have planned and controlled certain missions, putting them in charge of their African partner forces.

“Under both the Obama and Trump administrations, the military has relied on partners in other countries to carry out crucial missions against suspected terrorists, to avoid American casualties after years of massive direct involvement in Iraq and Afghanistan. But having Americans plan and retain operational control of the missions gives them greater ability to strike quickly against threats, according to supporters of the programs, even as it shields the true nature of the missions from critics in the United States and abroad.”

THE LATEST ON NORTH KOREA — “As Bolton Says North Korea Could Disarm in a Year, Reality Lags Promises,” by NYT’s David E. Sanger and William J. Broad: “President Trump’s national security adviser said on Sunday that North Korea could dismantle all of its nuclear weapons, threatening missiles and biological weapons ‘in a year,’ a far more aggressive schedule than the one Secretary of State Mike Pompeo outlined for Congress recently, reflecting a strain inside the administration over how to match promises with realism. The statements by John R. Bolton, the national security adviser and historically a deep skeptic that North Korea will ever fully disarm, came as Mr. Pompeo prepares to make his third trip to North Korea late this week.

“Mr. Pompeo will arrive in Pyongyang with a proposed schedule for disarmament that would begin with a declaration by North Korea of all its weapons, production facilities and missiles. The declaration will be the first real test of the North’s candor, amid increasing concern that it may be trying to conceal parts of its nuclear program. … Advisers to Mr. Pompeo, both outside the government and inside the C.I.A., which he used to direct, have cautioned him that North Korea will not give up its arsenal of 20 to 60 weapons until the last stages of any disarmament plan — if it gives them up at all.”

— “North Korea Expands Key Missile-Manufacturing Plant,” by WSJ’s Jonathan Cheng in Seoul: “North Korea is completing a major expansion of a key missile-manufacturing plant, said researchers who have examined new satellite imagery of the site, the latest sign Pyongyang is pushing ahead with weapons programs even as the U.S. pressures it to abandon them. The facility makes solid-fuel ballistic missiles—which would be able to strike U.S. military installations in Asia with a nuclear weapon with little warning—as well as re-entry vehicles for warheads that Pyongyang might use on longer-range missiles able to hit the continental U.S.”


— “Top GOP Fundraiser to Stop Hush Payments Over Affair,” by WSJ’s Michael Rothfeld and Joe Palazzolo: “A top Republican fundraiser will stop making payments to a former mistress who signed a hush-money agreement that was negotiated last year by Michael Cohen, President Donald Trump’s longtime lawyer.

“Elliott Broidy, a Los Angeles venture capitalist and former [RNC] official, agreed to pay former Playboy centerfold Shera Bechard $1.6 million—in eight installments, beginning late last year—to keep quiet about her affair with the married donor, The Wall Street Journal reported in April. Now Mr. Broidy, who worked on the RNC with Mr. Cohen, will withhold the third installment of $200,000 that was due Sunday, in response to an alleged breach of the nondisclosure agreement, according to Chris Clark, a lawyer for Mr. Broidy.

“Mr. Clark said Ms. Bechard’s lawyer at the time of the agreement, Keith Davidson, improperly discussed the hush-money agreement with another lawyer, Michael Avenatti … ‘Elliott specifically was paying for confidentiality that would shield his family from the embarrassing mistake he made,’ Mr. Clark said. ‘We can prove there was an intentional breach that renders the contract null and void.’”

PRUITT FILES — “Emails reveal close rapport between top EPA officials, those they regulate,” by WaPo’s Juliet Eilperin: “Littered among tens of thousands of emails that have surfaced in recent weeks, largely through a public records lawsuit filed by the Sierra Club, are dozens of requests for regulatory relief by industry players. Many have been granted.

“In March 2017, for example, a lobbyist for Waste Management, one of the nation’s largest trash companies, wrote to two top EPA appointees seeking reconsideration of ‘two climate-related rules’ affecting business. (Another lobbyist ‘sings your praises,’ she told the pair.) The EPA subsequently delayed a rule targeting methane emissions from landfills until at least 2020.”

CLICKER — @EricLiptonNYT: “STICK WITH US FOR THIS THREAD: We know Scott Pruitt doesn’t like to email (avoids creating a ‘paper trail’) Turns out he DOES (or did) snail mail. Guess who he writes to? Oil & gas executives. Come along for the ride as we check out bit of his correspondence. BP America up first”. The thread

NSC ARRIVAL LOUNGE — @mdubowitz: “Proud of my @FDD colleague @_ARuggiero [Anthony Ruggiero] who is joining the NSC on Monday as the new North Korea director. 17-year veteran of State, Treasury & the Senate, Anthony is an unrivaled expert on North Korea sanctions. We will miss him.”


SPOTTED at Lally Weymouth’s annual Southampton summer party at her house: Lloyd and Laura Blankfein, Steven Spielberg, Treasury Secretary Steven Mnuchin, Transportation Secretary Elaine Chao, Lewis Liman, Tom Lee, Steven Rattner, Iris Weinshall, Ruth Porat, Joel Klein, Jim Hoge, Kevin Rudd, Gillian Tett, Edward Cox, Carl Bernstein, Martha Stewart, Margaret Carlson, Don Graham (who gave a toast), Stephen Graham, Katharine Weymouth, Edward Cox, Steve Clemons, Daryl Roth, Bob Balaban, Mark Ein, Carl Icahn, Fred Hiatt, Tory Burch, Sherrie and David Westin, Reps. Peter King (R-N.Y.) and Nita Lowey (D-N.Y.), Jordan’s Ambassador to the U.S. Dina Kawar, Gayle King, Maria Bartiromo, Jimmy Finkelstein and Tzipi Livni.

— TRUMP ALUMNI: NADIA SCHADLOW is now a senior fellow at the Hudson Institute. She most recently served as deputy national security adviser for strategy in the Trump White House and was the principal author of the administration’s National Security Strategy.

TRUMP’S MONDAY — The president is meeting with Secretary of State Mike Pompeo. In the afternoon, he will also meet with Netherlands Prime Minister Mark Rutte.

MCMASTER’S NEW GIG — “Ex-Trump Adviser McMaster to Take on ‘Infected’ National Security Discourse,” by WSJ’s Dion Nissenbaum: “H.R. McMaster, pushed out in April as President Donald Trump’s national security adviser, is joining Stanford University’s Hoover Institution, where he hopes to develop bipartisan national security ideas.

“Mr. McMaster, who struggled to retain influence in the fractious White House, said, as a senior fellow, he hopes his work can influence national security policy as the U.S. works to combat rising threats from rivals such as Russia and China. … While working at Hoover, Mr. McMaster said he also is planning to write a book. … Mr. McMaster said he plans to write a substantive book about national security.”

2018 WATCH — “The truth behind Bob Casey’s ‘pro-life’ stand,” by Jen Haberkorn: “Sen. Bob Casey calls himself a pro-life Democrat. But his voting record paints a different picture. After a decade in the Senate, Casey has become an increasingly reliable vote in support of abortion rights — scoring as high as 100 percent on NARAL Pro-Choice America’s vote tally in 2016 and 2017. Anti-abortion groups insist he’s no champion of their cause — and view him as unlikely to support President Donald Trump’s nominee for the Supreme Court, whose confirmation will be a proxy battle on the future of Roe v. Wade.

“All of which may complicate Casey’s reelection battle, forcing him to defend his voting record in heavily Catholic Pennsylvania as he attempts to hold off a challenge from GOP Rep. Lou Barletta. Barletta seized on the issue immediately after Justice Anthony Kennedy announced his retirement last week. ‘I’m 100 percent pro-life,’ Barletta said. ‘According to his voting record, he’s voted only 20 percent for life in the 115th Congress.’

Casey said he opposes the Roe decision legalizing abortion but is ‘highly unlikely’ to back anyone on Trump’s already public list of nominees.”

****** A message from the U.S. Chamber of Commerce: In response to U.S. tariffs, other countries have imposed tariffs on approximately $75 billion worth of U.S. exports. Tariffs won’t solve any problems and will only hurt the economy. See the impact on your state at ******

BONUS WOMEN RULE PODCAST — ANNA talked all things soccer with HOPE SOLO in the latest “Women Rule” podcast, which we are releasing a few days early on this holiday week. Via REENA FLORES: “As World Cup fever sweeps the country, soccer star Hope Solo is hoping to make some drastic changes in how the sport is played – and regulated – in the U.S.

“‘Soccer in America has become the rich white kid’s sport,’ Solo, the former goalkeeper for the U.S. Women’s National Team, said. … She ticked off a list of grievances against the U.S. Soccer Federation, the sport’s governing body, saying the costs it imposes to play in soccer clubs have ‘alienated’ Latino, black and rural communities. From expensive coaching licenses to rising club fees, Solo maintained that barriers to participation have contributed to a lack of talent at the highest levels of the game.”

MEDIAWATCH — SARAH ELLISON in WaPo, “Rupert Murdoch: The media mogul says goodbye to much of the company he built”: “It all started with a few glasses of wine and two media titans talking about how hard life is. Rupert Murdoch, the 87-year-old founder and co-executive chairman of 21st Century Fox and News Corp., and Bob Iger, the 67-year-old chief executive of the Walt Disney Co., met last August at Murdoch’s Moraga vineyard in the Bel Air hills of Los Angeles and discussed the myriad challenges their multibillion-dollar corporations faced, according to two people familiar with the discussion. Facebook, Amazon, Netflix and Google were dwarfing their old-media conglomerates.

“As much as Murdoch liked positioning himself as the underdog and outsider, these new digital competitors were turning out to be too much. Not long after Iger drove away from that conversation (and after other meetings Murdoch and his sons held with Verizon and Comcast), the two men sketched out a deal that involves Murdoch selling the bulk of the company to Disney, but retaining a large stake in the combined entity.

“The proposed $70 billion agreement requires Iger to remain as CEO. Aside from the big payday, it is a seminal moment for Murdoch, who is turning over the power to run the company he has spent his career building. The media mogul is saying goodbye to his life’s work.”

SPOTTED: Rep. Jim Clyburn (D-S.C.) flying on American Airlines from Fort Lauderdale to Charlotte after speaking at Florida Democratic Party’s Leadership Blue Saturday night.

SPOTTED at the Canadian Embassy’s Canada Day Party which featured the Lord Stanley’s Cup: performer Elliott Brood, Luiza Savage, Blake Hounshell, Marty Kady, Danica Stanciu, Pete Sheffield, Todd Malan, Shannon Banaga, Lisa Merrithew, Kirsten Hillman, Katherine Baird, Richard Madon, Adrian Morrow, Lawrence Martin, Noah Bierman, Andrea Owen, Robert Cusmano and John Sandell.

WEEKEND WEDDINGS — Philip de Vellis, co-founder of the Democratic media firm Beacon Media and alum of Putnam Partners and Murphy Putnam, married Lisa Lambert, a correspondent at Reuters, on Saturday evening on the grounds of President Lincoln’s cottage. The couple first met at Coffy Cafe in Columbia Heights. Pics

SPOTTED: Julian Mulvey, Margie Omero, Ben Wikler, James Duffy, Cayce McCabe, Mike Reilly, Ian Russell, Christina Coloroso, Kevin and Anna O’Brien, Rebecca Pearcey, Nu Wexler, Karl Frisch, Ken and Allison Morley, Jarrod and Alicia Backous.

— Amanda Gonzalez, communications director for Rep. Trey Gowdy (R-S.C.) as well as for the House Committee on Oversight and Government Reform, married Will Thompson, a policy analyst for the Charles Group, who will begin attending law school in the fall. Pool report from South Carolina: “The wedding was held at Palmetto Bluff … Along with family members and close friends, Dana Perino was also seen tearing up the dance floor with her husband at the wedding reception.” Pics

BIRTHDAY OF THE DAY: Eric Fanning, president and CEO of Aerospace Industries Association and former U.S. Secretary of the Army, is 5-0. A fun fact about Eric: “I took the year off after college to sail from Maine to the Caribbean and back – all before cell phones and GPS. It was during the first Gulf War, and I didn’t know the ground war had started until it was already finished.” Read his Playbook Plus Q&A:

BIRTHDAYS: Jonathan Capehart is 51 (hat tip: Ben Chang) … Courtney Geduldig, EVP of public affairs of S&P Global … Brad Todd, founding partner of On Message and co-author of “The Great Revolt: Inside the Populist Coalition Reshaping American Politics” … David Lopez … Luci Baines Johnson is 71 … Katherine Lehr … Politico’s Victoria Adeniji and Maria Rivero … Sammi McClain … former N.H. Gov John H. Sununu is 79 … former Mexican President Vicente Fox is 76 (h/t Jorge Guajardo) … Keith Morrison, correspondent for NBC’s “Dateline” … former Philippine first lady Imelda Marcos is 89 … Scott McGee of Kelley Drye … Matthew Dybwad of Adobe … Politico’s Brooke Minters and Cristina Rivero … Berrin Tunçel … Rep. Elise Stefanik (R-N.Y.) is 34. “She celebrated by taking the ferry across Lake Champlain and husband Matt surprised her with a visit and stay at the Von Trapp Family Lodge in Stowe, Vt. Elise played Gretl as a little girl in her high school musical ‘Sound of Music’” (h/t Nala) … Rep. Doug LaMalfa (R-Calif.) is 58 … Rep. Randy Weber (R-Texas) is 65 … former Rep. Mike Castle (R-Del.) is 79 … Collin Davenport … Devon Gallagher …

… Derek Gianino, national engagement director at U.S. Global Leadership Coalition … U.S. Army Captain Chuck Nadd … Fenton CEO Ben Wyskida is 41 … Gus Ericson … Kara Rowland, comms consultant in Denver and a Fox News alum … Alysha Love, a CNN Politics alum … Matthew L. Schwartz, Boies Schiller Flexner partner and former “Madoff Five” and “London Whale” prosecutor (h/t Lynn Trono) … Sophie Pyle Zeigler, founder of Rosé Media (h/ts hubby Lucien Zeigler and Drew Keaton) … Sara Roberts … Caroline Keyes (h/t sister Christyn Lansing) … Jessie Nguyen … Gina Woodworth, director of U.S. public policy at Snap (h/t Jen Stout) … Eddie Fishman, a nonresident senior fellow at the Atlantic Council (h/t wife Lepi Jha) … Joel Bernick is 8-0 (h/t wife Elaine) … Arkadi Gerney … Ethan Oberman, CEO of Metrograph, is 42 … Trevor Neilson … Jean Cecil Frick … Marie Formica … Reuters’ Michele Gershberg … Sam Nitz … TIME’s Jonathan Woods … Brooke Oberwetter Coon of Facebook (hubby tip: Joey) … Emily Stanitz … Lily Velasquez … Lyndsey Fifield … Hannah Rosenthal … Sam Hutchison … Michael Matthews … John Brown … Susan Vilmain … Ali Chishti … Ashley Zohn … Mike Chapman … Josh Cahan.

****** A message from the U.S. Chamber of Commerce: Tariffs imposed by the United States are nothing more than a tax increase on American consumers and businesses, including manufacturers, farmers, and technology companies. Here’s a breakdown of the states and industries hardest hit by retaliatory tariffs on American exports. ******

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