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Trump Imposes 25 Percent Tariffs On Steel And Aluminum Imports; Hamas Threatens To Delay Planned Hostage Release; Trump's Push For Peace In Ukraine; Judge Extends Deadline For Federal Worker 'Buyout' Offer; Macron: Europe Needs an A.I. Agenda. Aired 12-12:45a ET
Aired February 11, 2025 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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JOHN VAUSE, CNN INTERNATIONAL ANCHOR: No exceptions, no exemptions. The new Trump tariffs on steel and aluminum now in place.
Hello, I'm John Vause. Ahead on CNN NEWSROOM.
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(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This is the beginning of making America rich again.
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VAUSE: Well, Donald Trump is making some big promises experts disagree, warning his tariffs could fuel inflation and cost American jobs.
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JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: The most significant threat to the ceasefire agreement thus far. But it is a threat for now.
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VAUSE: A fragile Gaza ceasefire now hanging in the balance as Hamas delays the next release of Israeli hostages.
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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Mina wears a Team Putin T-shirt, but also likes what she's hearing from the new U.S. president.
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VAUSE: And from Russia with love for the new U.S. President Donald Trump especially his push for peace talks to end the war in Ukraine.
ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause. VAUSE: Donald Trump has significantly escalated his tariff war with a
new blanket 25 percent tariff on all imported steel and aluminum, without any exceptions or exemptions. The tariffs are aimed primarily at China, the world's largest steel producer. Less than 2 percent of steel imported by the United States comes directly from China. But in recent years, Chinese steel makers have used Mexico and other countries as a backdoor to the U.S. market, circumventing tariffs, which were announced during President Trump's first term.
Canada, Mexico and Brazil will be the hardest hit by tariffs announced Monday. The U.S. buys almost $10 billion worth of steel and iron every year from Canada, more than any other country. Canada's industry minister says the action taken by the Trump administration Monday is totally unjustified.
Donald Trump, though, seems determined to upend global trade. A raft of new tariffs, he says, are about evening the playing field, especially when it comes to China.
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TRUMP: It's time to be reciprocal. It's a very, very -- you'll be hearing that word a lot. Reciprocal. If they charge us, we charge them. If they're a 25, we're a 25. If they're at 10, we're a 10. And if they're much higher than 25, that's what we are, too.
(END VIDEO CLIP)
VAUSE: In response to the Trump tariffs, Chinese tariffs between 10 percent and 15 percent on nearly $14 billion of U.S. imports took effect Monday, targeting products from coal and liquefied natural gas to crude oil, farm equipment and big trucks.
U.S. president has added that he has spoken with Chinese President Xi Jinping since taking office three weeks ago. President Trump did not reveal whether they spoke about the tariffs, but said he likes Mr. Xi a lot and they have a very good personal relationship.
CNN's Simone McCarthy, following the brewing trade war. She's live this hour from Hong Kong.
So let's talk about the Chinese tariffs which have taken effect. They seem to be very targeted and calibrated to the Trump tariffs.
SIMONE MCCARTHY, CNN SENIOR NEWS DESK CORRESPONDENT, CHINA: That's exactly right, John. I mean, it's very possible that we might be seeing the first return shots in what could be a new trade war between the world's two largest economies. But at the same time, China has been very measured in what they've done so far. That $14 billion in tariffs that you referenced at the start, that's actually less than 10 percent of all of the imports that are coming from the United States into China.
We've been crunching those numbers over here in Hong Kong. And what we're reading from that is that China really wants to send a signal that, OK, we're not going to sit on our hands over here. We've put some export controls down. We have these tariffs. They've got a complaint into the WTO. But they're also not going to over escalate at this time. What they really want to do is say, hey, we still want to talk.
John, as you well know, the Chinese economy is not in a good position right now. The last thing they want to see is an escalation. So I think that this first round, or what may only be a first round, is something that they're leaving the door open to be able to continue to talk with the Trump administration.
VAUSE: Ultimately, though, this could end up in some kind of tit-for- tat trade war. And if you look at the tariffs which are in place right now, they have plenty of room to escalate. So where could they go from here?
MCCARTHY: Well, it's a very good question. And you can be sure that China is really weighing up all of the different options that they have. And that may be different penalties that they can put, more tariffs, more export controls. China controls a tremendous amount of the supply chains for a number of those critical minerals that the U.S. sees as important for its national security. At the same time, I think China really wants to focus on dialog at this time.
I think Beijing would be thrilled to host Donald Trump in the capital. They would love to really lean into that personal rapport between Xi Jinping and Donald Trump. I mean, certainly they've been really happy, I think, with the tone that they've seen from the Trump administration so far. We haven't seen yet those upwards of 60 percent tariffs that Trump suggested when he was on the campaign trail that he could levy on China.
He's also made, as you referenced, very positive comments about Xi Jinping. And so certainly we're thinking that because these two governments have seen to be remained open to dialogue, that there is a possibility that China could avert it. At the same time, if they're not able to come to the negotiating table, then I think we will see certainly more pain in both economies.
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China right now will be really keen to avoid that because as they're looking at the challenges that they face in their own economy, they're really having to weigh that up. And because of the huge trade gap between China and the United States, they're not really going to have a lot of leeway to make a kind of big, big moves in that. So really, they're going to have to think about what concessions they may want to make to the Trump administration.
Right now, I don't think it's clear what Trump would accept from China. And I also don't think we know exactly what China would be willing to give up. So that's something that we're definitely going to be watching in the coming weeks and months ahead.
VAUSE: Simone, thank you. Simone McCarthy there live for us in Hong Kong. Thank you.
MCCARTHY: Thanks, John.
VAUSE: David Lynch is joining us now for more on the reality of these Trump tariffs 2.0. David is a financial reporter covering trade and global economics for the "Washington Post."
Thanks for being here.
DAVID LYNCH, GLOBAL ECONOMICS CORRESPONDENT, THE WASHINGTON POST: Happy to.
VAUSE: So here's the U.S. president on what he believes was the impact from his first round of tariffs on imported aluminum or aluminum and steel back in 2018.
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TRUMP: So the failed American trade policies have led our once incredible United States steel and aluminum industries, once incredible, that's once incredible, they're not now, but they're not bad. I saved them because of my first term. Totally saved them.
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COLLINS: Yes, or not. Here's what really happened. Although the steel industry reaped marginal benefits, prices for manufactured goods within the U.S. soared, pushing jobs in those industries out of the country, the former CEO of Ford said profits were down about $1 billion because of increased costs from tariffs in 2018. And while a thousand new jobs were created in the U.S. steel industry in the first year of the tariffs, about 75,000 jobs were estimated to have been lost in manufacturing, again because of increased costs caused by the tariffs.
So despite what the president would like to believe, is there any reason why these new tariffs might result in a different outcome from the last time?
LYNCH: Well, I think the administration's argument is that unlike the last time, these will be more comprehensive and they will close what the president and his advisers see as loopholes, exemptions, exclusions that have allowed Chinese steel to continue entering the U.S. market via Canada, Mexico and other countries.
Now of course what we saw the last time was, as you say, marginal benefits for the steel producers but there are a lot more Americans, 10 times as many Americans, who work in steel using industries like the auto sector, who may end up being hurt by this.
The other factor to consider is the retaliation that's inevitable from our trading partners. We saw that the last time. The European Union, just within the past 24 hours, has promised to retaliate against these measures. Canada is certain to do the same. Mexico as well. And so what we're likely to see going forward is another form of the trade wars that we saw back in the 2018 to 2020 era.
VAUSE: And on Monday, the president outlined the overall goal for his tariff trade policy when he was answering a number of questions from reporters like this one.
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UNIDENTIFIED REPORTER: What do you say to consumers who are worried about prices?
TRUMP: Oh, I don't think you're going to know. You're going to ultimately have a price reduction because they're going to make their steel here. There's not going to be any tariff. These foreign companies will move to the United States, will make their steel and aluminum in the United States. Ultimately, it'll be cheaper.
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VAUSE: I think what the president wants, obviously, is that manufacturing jobs to return to the U.S. And that's what the tariffs he hopes will do. But tariffs alone seem like a bit like a one armed man clapping. And even if those jobs actually do return, does that mean they'll be lower prices for consumers?
LYNCH: Well, I think the president's view here is a minority view. I think most economists would tell you that certainly in the near term and the medium term, you're going to see a price increase that's going to start with the businesses and the manufacturers that use steel and aluminum. The whole point of tariffs is to raise the cost of foreign made goods to discourage Americans from buying them.
When you do that, when you make foreign steel and aluminum more expensive, the domestic producers are able to raise their prices as well because the competition isn't as tough. And so you end up with higher prices across the board. Those inputs factor into other products like cars and appliances and airplanes and hand tools and any number of products that use those metals, that are made of those metals.
VAUSE: And you mentioned that, you know, this earlier, because we've been down this road before, we have a good idea of how other countries will respond to these tariffs. Here's the German chancellor Olaf Scholz.
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OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): One thing is clear. We will examine this closely as the European Union when it officially reaches us. And that's why we can only say something very cautiously about it now.
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But with great clarity, anyone who imposes tariffs must expect counter-tariffs.
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VAUSE: Yes, last time around, U.S. agriculture was hit by E.U. tariffs. So too farm equipment, iconic American brands like Harley- Davidson motorcycles and bourbon also were hit. How effective were those targeted tariffs? And you know, will they be doing similar targeted tariffs at this time?
LYNCH: Yes, I think there's no question that we're going to see similar retaliation probably even more rapidly than the last time because, you know, the president has been telegraphing this punch for some time. The European Union has had a task force looking at ways to respond to such U.S. tariffs even before President Trump was sworn in. The Canadians have vowed retaliation, had drawn up a list several weeks ago, when the president was in the process of threatening tariffs over immigration and illicit drug trafficking.
And the Canadians made a point of saying that they were aiming for politically potent tariffs that would deliver economic pain to key constituencies in the United States that are presumably important to the president. The red states, the politically so-called red states, Republican areas that delivered him the presidency. And so in the past, that's made a mark here in Washington. And it's cost the United States taxpayer a fair bit of change.
VAUSE: David, thank you so much for being with us.
LYNCH: Anytime.
VAUSE: An already fragile Gaza ceasefire is now hanging in the balance with both Israel and Hamas accusing the other of serious violations. Hamas says the next release of Israeli hostages scheduled for Saturday could be delayed, accusing the Israeli military of firing on Palestinian civilians returning to their homes in the north of the territory. Hamas also says Israel is refusing to allow certain humanitarian supplies, like tents, into Gaza.
Israel's defense minister has accused Hamas of its own ceasefire violations, and has ordered troops to be ready for the possibility of renewed fighting. The U.S. president, also weighing in.
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TRUMP: I'd say they ought to be returned by 12:00 on Saturday. And if they're not returned, all of them, not in dribs and drabs, not two and one and three and four and two. Saturday at 12:00. And after that I would say all hell is going to break out. And I don't think they're going to do it.
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VAUSE: In Tel Aviv, protesters are calling for all remaining Israeli hostages in Gaza to be released. They're also accusing the Israeli Prime Minister Benjamin Netanyahu of trying to sabotage the deal.
More details now from CNN's Jeremy Diamond.
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DIAMOND: Hamas is threatening to delay the release of the next three Israeli hostages this coming Saturday over what it says are a series of violations of the ceasefire agreement by Israel. Not only do they say that Israeli forces have fired on Palestinians inside the Gaza Strip, they also accuse Israel of obstructing the entry of shelter equipment including tents, but also these prefabricated homes that Hamas says were supposed to have entered Gaza by now but have not.
The Israeli government hasn't responded to those specific ceasefire violation allegations. But we do know that this certainly seems to represent the most significant threat to the ceasefire agreement thus far. But it is a threat for now, and Hamas is making clear that they have issued this threat five days ahead of this planned release, in order to give the mediators, quote, "sufficient time" to pressure Israel to get in line with the ceasefire agreement.
And they say that that leaves the door open to this Saturday hostage release actually going forward as planned. But this is already a very delicate time in the region. In Israel, the public consciousness here has really been seared with the images of those three emaciated hostages who emerged on Saturday after 16 months of captivity. It's really driven a sense of urgency about the fate of the remaining hostages.
And then in Gaza, of course, there is in the background President Trump's proposal to permanently displace more than two million Palestinians who live there and for the United States to take ownership of it. And all of that, of course, puts these ceasefire negotiations with added stakes and in a very delicate position.
Now, in response to this, the Israeli defense minister says that he's putting Israeli troops on their highest alert for -- to prepare for, quote, "any possible scenario in Gaza." The question now is how will the Israeli government respond to all of this? We know that the Israeli prime minister is set to meet with his security cabinet.
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VAUSE: And a warning from the U.S. president, Donald Trump, to Egypt and Jordan of consequences if they refuse to take in millions of Palestinians forced out of Gaza, a key part of Trump's post-war plan for the territory.
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UNIDENTIFIED REPORTER: Would you withhold aid to these countries if they don't agree to take in the Palestinians?
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TRUMP: Yes, maybe. Sure. Why not? You mean if they don't agree? If they don't agree, I would conceivably withhold aid.
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VAUSE: And Donald Trump clarified Monday that his plans for Palestinians in Gaza is essentially a one-way ticket out. No right of return. His proposal has been rejected by Jordan, Egypt and other Arab nations. But it's important to note Jordan and Egypt are among the top recipients of U.S. Military assistance and other humanitarian assistance as well.
Still to come here on CNN, the Trump administration pushing for peace in Ukraine. The very latest on how Kyiv and Moscow are responding to those plans.
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VAUSE: U.S. special envoy for Ukraine and Russia, Keith Kellogg, is expected to visit Ukraine next week. A source in the Ukrainian government tells CNN the trip is set for February 20, after the Munich Security Conference this weekend, where Kellogg says he plans to discuss with allies peace plans for Ukraine.
Ukrainian President Volodymyr Zelenskyy announced he also plans to meet U.S. Vice President JD Vance at the Munich conference. But Russia's deputy foreign minister says any peace negotiations with Ukraine must include Moscow's indisputable ownership of annexed Ukrainian regions.
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SERGEI RYABKOV, RUSSIAN DEPUTY FOREIGN MINISTER (through translator): Undoubtedly, Ukraine joining NATO is one of the root causes of the special military operation. In terms of Kursk, our president has said it all. This is an issue that is so obvious to everyone. Even to those who live outside of Russia.
I want to say that the certain cunning with which our Western opponents, mainly the U.S., primarily discuss these topics is also quite understandable.
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VAUSE: All this comes as the U.S. president pushes for a negotiated end to the almost four-year long war.
CNN's Fred Pleitgen reports on the reaction from inside Russia to Donald Trump, peacemaker.
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PLEITGEN (voice-over): Thank you, soldier, the song goes, the crowd chiming in at an event in support of Russian veterans and troops fighting in what Moscow still calls its special military operation in Ukraine.
Valentine fought for the now defunct Wagner private military company and says he's not unhappy President Trump is in office and Biden is out.
Biden, I don't want to offend him, of course, but my personal opinion is that he was like an oddity in the country. Like the U.S. Trump is a commercial man. He's a businessman. He does everything for his own benefit. Nina wears a team Putin T-shirt, but also likes what she's hearing
from the new U.S. president.
Of course I like him, she says. You have to be tough and have discipline in everything so people can live well without wars.
Do you think he can help resolve the conflict with Ukraine, I asked.
It's long overdue, she says. He promised it and we're waiting for it. Hurry up. Don't waste time. People are dying.
UNIDENTIFIED MALE: Our grandfathers once saved the world.
PLEITGEN: Russian intelligence following up with a very open influence operation targeting Americans. This slick ad showcasing Soviet and U.S. troops defeating Nazi Germany together.
UNIDENTIFIED MALE: Don't trust those who would divide us. Remember, we all fought together for the truth. Our grandfathers' flags matter.
PLEITGEN: Urging Americans not to support further military aid for Ukraine. At the end, the symbol of Russia's foreign intelligence service, the SVR. All this as President Trump this weekend claimed he's already in talks with Russian leader Vladimir Putin to end the war.
TRUMP: And I want to stop it just because I hate to see all these young people being killed. The soldiers are being killed by the hundreds of thousands.
PLEITGEN: While Russia says its forces are making steady progress on the battlefield in Ukraine, the costs are high. The Ukrainians publishing this video allegedly showing a Russian warplane crashing during battle in the same area.
The Russians won't confirm or deny whether President Trump and the Russian leader have already spoken directly. And Russia's deputy foreign minister making clear peace talks with Moscow will be tough when I asked him at a press event.
There is no hidden agenda or purpose in our position, he says. There's no element of grandstanding. Our position is derived from a full understanding of internally felt and deeply experienced tragedy and seriousness of what is happening to the national interests of our country.
Music to the ears of those attending the veterans event in Moscow, vowing to fight on as long as the Kremlin says.
Fred Pleitgen, CNN, Moscow.
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VAUSE: At least 51 people have been killed in a bus accident in Guatemala City. The bus fell from a highway overpass Monday, plunging into a ravine 20 meters below. According to a fire department spokesperson, some passengers were trapped in the wreckage, which has been partially submerged by a polluted river. Guatemala's president has declared three days of national mourning.
Still to come here on CNN, another legal setback for the Trump administration. So-called buyout offers for federal workers has been delayed again, while the courts decide if the plan is even legal.
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VAUSE: Welcome back to our viewers all around the world. I'm John Vause. You're watching CNN NEWSROOM.
Ecuador's presidential election is heading to a runoff between a crime-fighting incumbent and leftist challenger. President Daniel Noboa will face Lucia Gonzalez in the second round vote scheduled for April. Noboa leads 16 other candidates in Sunday's election with just over 44 percent of the vote, just short of an outright majority, which he needed to avoid the runoff.
Gonzalez, who lost to Noboa in a snap election two years ago, came with a fraction of Noboa's support just under 44 percent. This election comes as Ecuador is grappling with an unprecedented security crisis, fueled by the drug trade and a steep increase in murders.
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A deadline for U.S. federal workers to accept a buyout offer from the White House has been extended again. Now, a federal court will decide if those offers are legal, a key part of Donald Trump's attempt to gut the federal government.
CNN's Paula Reid has details.
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PAULA REID, CNN CORRESPONDENT: Well, federal employees did not get the clarity they were hoping for on this deferred resignation offer they received from the Trump administration.
On Monday, a federal judge in Boston heard arguments from the Justice Department, defending the administration.
(AUDIO GAP)
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VAUSE: A few problems there. We'll get back to that story, if we can. In the meantime, we'll take a short break.
In a moment, French President Emmanuel Macron, speaking to CNN about the future of artificial intelligence, says Europe needs an agenda to stay competitive in the A.I. race.
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VAUSE: The acting directory -- director, rather, of the agency meant to protect Americans from financial abuse has told employees to stop their work altogether.
The order from Russell Vought came one day after he closed the headquarters of the Consumer Financial Protection Bureau in Washington, told workers to stay home this week.
President Donald Trump has said he wants to totally eliminate the agency, claiming it's wasteful and it's run by bad people.
Protesters rallied in support of the agency Monday, including Democratic Senator Elizabeth Warren, who says Russell Vought is giving big banks and corporations the green light to scam families.
The U.S. penny, the $0.01 coin, could be another victim of the Trump administration, which has ordered the U.S. Mint to stop production because of cost. Each one actually costs almost $0.04 to make.
But the Constitution says only Congress has the power to coin money and regulate currency. The penny, though, has been under bipartisan scrutiny for years. Its purchasing power has all but disappeared.
Elon Musk is attempting to put himself at the forefront of artificial intelligence. The Tesla and SpaceX founder is leading a group of investors who have offered to buy the parent company of ChatGPT for nearly $100 billion.
Musk is no stranger to Sam Altman's OpenAI, which owns the popular machine-learning software. He co-founded the company back in 2015 and left over disagreements on a shift from nonprofit to for-profit work.
Altman posted on X, which is owned by Musk, quote, "No thank you, but we'll buy Twitter for $9.74 billion if you want."
The future of A.I. security is high on the agenda at the second day of the Artificial Intelligence Action Summit in Paris. Political and business leaders are meeting to discuss how to create effective guardrails for A.I. without stifling innovation.
French President Emmanuel Macron spoke with CNN's Richard Quest about the sense of urgency surrounding A.I., especially with President Trump putting so much emphasis on this new technology.
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EMMANUEL MACRON, FRENCH PRESIDENT: We need an A.I. agenda, because we have to bridge the gap with the U.S. and China on A.I. Otherwise, we will consume, we will use the A.I. being produced and invented in the U.S. and China.
But we will not be the one to control ours.
RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT/ANCHOR: Let me just -- how much has your thinking and your execution been put on turbocharge by the new administration and it's much more muscular -- some would say brutal -- way in which it's basically saying, We're going to do it. Europe, we're going to do it anyway?
MACRON: Look, I will be very clear. I think the election of President Trump is, as well, a wake-up call. A wake-up call on top of the others for the Europeans. It means you cannot procrastinate anymore.
So, this is why I will work very hard to have, obviously, the backing of France but some key countries, with Ursula von der Leyen and her team, in order to deliver this package and this agenda.
QUEST: The idea is, though, Europe -- what we're really talking about on this is a change of mindset here, that Europe, for example, as Draghi says, can't have 27 champions in certain sectors. It's going to have to have a pan-European industrial A.I. policy.
That is something that Europe has never had, and -- and seems not to want to have.
MACRON: But guess what? Here's the very first second (ph) Europe was created. It didn't exist before. Guess what? Until we decided, with Angela Merkel, to issue together common debt, it didn't exist before.
So, we have in this moment, where the unthinkable is happening, we have to deliver brand and ambitious new things and big things.
If you take the last three decades, the GDP per capita increased two times more in the U.S. than in Europe. It's incredible. And why? Because of the lack of innovation and diffusion of this innovation.
So, this is why for me, this is a top priority.
And you're right. What does it mean? It means we have to simplify our organization and our program and to say we are ready to invest in the best athletes (ph) in Europe and to say it will not be in your country, not in your country, but in this one.
(END VIDEOTAPE)
VAUSE: President Macron is set to meet with U.S. Vice President J.D. Vance in the coming hours on the sidelines of the A.I. summit.
A weekend surprise for some Ed Sheeran fans in India.
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(MUSIC)
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VAUSE: Four-time Grammy winner there, busking in Bangalore, but an overzealous police officer cut the performance short, disconnecting both guitar and microphone mid-song.
City officials say Sheeran did not have permission for a street performance, but Sheeran says he was given the all-clear.
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He's on tour in India and will hold two more shows later this week in India.
Thank you for watching CNN NEWSROOM. I'm John Vause, back with more CNN newsroom at the top of the hour. In the meantime, please stay with us. WORLD SPORT is up next. See you in about 20 minutes.
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