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Trump Announces Sweeping New Tariffs On All Imports; U.S. Trading Partners Weigh Response To Trump Tariffs; Israel Expanding Operation In Gaza; Palestinian Tortured To Death For Criticizing Hamas. Aired 12-12:45a ET

Aired April 03, 2025 - 00:00   ET

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

[00:00:34]

JOHN VAUSE, CNN INTERNATIONAL HOST: The U.S. president declares a national economic emergency, ahead on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This is one of the most important days, in my opinion, in American history.

(END VIDEO CLIP)

VAUSE: With new reciprocal tariffs on trading partners, who the president says have looted, pillaged, raped and plundered. Trading partners like the E.U.

(BEGIN VIDEO CLIP)

URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: If you take on one of us, you take on all of us.

(END VIDEO CLIP)

VAUSE: Next comes retaliation with warnings of a global trade war, which could be devastating for the world economy.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): Last night in the Gaza Strip we switched gears.

(END VIDEO CLIP)

VAUSE: The Israeli military creating a security buffer zone, seizing and occupying territory in Gaza. But how much and for how long remains unknown.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause.

VAUSE: Donald Trump declared Wednesday liberation day, announcing the steepest tariffs in almost 100 years on some imports. Part of his plan to reshape the global economy which he says has allowed other countries to loot, pillage, rape and plunder the U.S. for more than 50 years.

Economists and world leaders are all warning this escalation of Trump's trade war will have devastating consequences, with consumers everywhere facing higher prices and raising the possibility of a U.S. and global recession.

On Wednesday, Trump used national emergency powers to impose tariffs on at least -- of at least 10 percent on most countries, with even higher rates for dozens of countries, which he called the worst offenders. The reciprocal tariffs are aimed at some of America's top trading partners, including a 34 percent levy on imports from China, 20 percent for the E.U.

The universal 10 percent rate will take effect Saturday with the customized higher rates starting a week from now. 25 percent tariff on all cars imported into the U.S. has just taken effect as well. President Trump claims his strategy will bring jobs and factories roaring back into the United States.

(BEGIN VIDEO CLIP)

TRUMP: This is one of the most important days, in my opinion, in American history. It's our declaration of economic independence.

(END VIDEO CLIP)

VAUSE: But there are clear signs of unease. Four Senate Republicans joined with Democrats to deliver a rare bipartisan rebuke of the president's trade policy, adopting a resolution 51 to 48 aimed at blocking the administration's proposed tariff on Canadian imports.

(BEGIN VIDEO CLIP)

SEN. RAND PAUL (R-KY): The president is set to have a 25 percent tax on goods coming from Canada and Mexico. This is a tax, plain and simple, on the American people.

(END VIDEO CLIP)

VAUSE: Wall Street is about to judge the impact of these tariffs. Bracing for a steep decline Thursday. There are the U.S. futures right now. Red across the board.

Also let's check in with the markets across Asia. They are down as well. The Nikkei in Japan down by more than 3 percent. Hong Kong down by 1.5 percent. The Shanghai down by half of 1 percent. And the Seoul KOSPI down by just over 1 percent.

CNN's Jeff Zeleny has the very latest now reporting in from Washington.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Moments after the closing bell on Wall Street Wednesday President Trump declaring a national emergency in the Rose Garden, finally announcing his reciprocal tariffs that he talked about throughout his presidential campaign and most every day since he has arrived here at the White House.

The president lying out a sweeping set of tariffs that is going to potentially reorder the global economic scene as well as the trading agreements with allies and adversaries alike. But the president said the United States has been taken advantage of. It's time for that to end.

TRUMP: In short, chronic trade deficits are no longer merely an economic problem. They are a national emergency that threatens our security and our very way of life. It's a very great threat to our country. And for these reasons, starting tomorrow, the United States will implement reciprocal tariffs on other nations.

It's been a long time since we even thought of that. We used to think about it a lot. We didn't think about it for many decades.

ZELENY: The president is correct. It has been decades since something like this has happened. Think back to before the Second World War. That is what is worrying some economists. They said this new protectionism that the Trump administration is ushering in will simply cause prices to rise for American consumers.

[00:05:03]

So the next shoe to fall here, if you will, is the potential for retaliatory tariffs across the board in the ag sector, the lumber sector, pharmaceuticals and so much more.

Now when you look at these country by country, line by line by line, there's a baseline 10 percent that the Trump administration imposed of a tariff. But then added on for several other countries that the president deemed bad actors, China, for example, 54 percent on tariffs. Of course think how much -- how many imports come into the United States. And tariff, of course, is a tax on a goods. So American consumers already bracing in this jittery economy.

The question now, this certainly is a big gamble for the president. Is it one that will pay off?

Jeff Zeleny, CNN, the White House.

(END VIDEOTAPE)

VAUSE: Global reaction to these tariffs has been mixed. Some countries would like to negotiate on the new levies, try to minimize their impact. Others are planning retaliation. The E.U. is planning both. European Commission president Ursula von der Leyen just spoke a short time ago, calling the tariffs a major blow to the world economy. She says the E.U. wants to negotiate with the White House, but is ready to respond to safeguard its own interests.

(BEGIN VIDEO CLIP)

VON DER LEYEN: I know that many of you feel let down by our oldest ally. Yes, we must brace for the impact that this will inevitably have. Europe has everything it needs to make it through the storm. We are in this together. If you take on one of us, you take on all of us.

(END VIDEO CLIP)

VAUSE: Canada and Mexico exempt from the reciprocal tariffs announced Wednesday, but still subject to a 25 percent tax on goods not covered by the Free Trade Agreement.

Here's the Canadian Prime Minister Mark Carney.

(BEGIN VIDEO CLIP)

MARK CARNEY, CANADIAN PRIME MINISTER: We are going to fight these tariffs with countermeasures. We are going to protect our workers, and we are going to build the strongest economy in the G7.

(END VIDEO CLIP)

VAUSE: The Australian prime minister has ruled out any retaliation, saying the existing trade agreement between the United States and Australia contains mechanisms to resolve this dispute.

(BEGIN VIDEO CLIP)

ANTHONY ALBANESE, AUSTRALIAN PRIME MINISTER: The administration's tariffs have no basis in logic, and they go against the basis of our two nations' partnership. This is not the act of a friend.

(END VIDEO CLIP)

VAUSE: Live now to Tokyo, CNN's Hanako Montgomery here with us now.

Japan was an interesting case here. It got hit with very large tariffs, even though its tariffs on U.S. goods are quite small by comparison. So what's the reaction been there in Tokyo as well as across the region?

HANAKO MONTGOMERY, CNN CORRESPONDENT: Hi, John. It's good to see you. So as you described, I mean Japan saw very large tariffs imposed on it from the U.S. president. In fact, these are the really most aggressive tariff moves we've seen made by U.S. president in modern history, really since 1910.

Now so far, Japan has responded by saying that it's extremely regrettable to see the U.S. impose large tariffs on the country, that it was seeking talks with the United States in order to try to reduce the impact of this. Of course, Japan has also emphasized how much the country invests in the United States in terms of its automobile industry, for instance, which is, of course, a cornerstone of the Japanese economy.

Now, similarly, the South Korean country has also expressed a lot of concern about the potential economic impact that these tariffs will have. Trump has imposed a tariff rate of 25 percent now on South Korea. In fact, we heard earlier today from the South Korean finance minister about the potential economic devastation we could see for the domestic economy. Listen to this.

(BEGIN VIDEO CLIP)

CHOI SANG-MOK, SOUTH KOREAN FINANCE MINISTER (through translator): The U.S. government's reciprocal tariff measures are likely to sustain high volatility in the global financial market for the time being, and the domestic, financial and foreign exchange markets are also expected to react sensitively.

(END VIDEO CLIP)

MONTGOMERY: Now, John, as you described, I mean, really no friend or foe was spared this time from Trump's tariff moves. But countries in Asia and in Europe were hit particularly hard, including, of course, China. We've seen tariff rates now go up to 54 percent, very close to that 60 percent benchmark that the U.S. president promised during his campaign trail.

Now, China has responded by calling these actions bullying and has also vowed countermeasures. In fact, in a statement released earlier today, the country's Commerce Ministry spokesperson said, quote, "There are no winners in a trade war and there is no way out for protectionism. China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue."

Now, clearly, many countries across the world are concerned about just how much of an impact these tariffs will have. How much of an impact this will have on its industries. But so far, the U.S. president, Donald Trump, hasn't really indicated that there could be any wiggle room, though potentially down the line, we might see discussions between several world leaders.

[00:10:09]

And John, as you mentioned there earlier, of course, stock markets across Asia have been down. The Nikkei 225 also down. And of course we've seen that similarly in Australia and South Korea. And really just as countries are bracing for the potential economic impact these tariff moves will have in the coming weeks, months and potentially even years -- John.

VAUSE: Hanako, thank you. Hanako Montgomery there. Good to see you. Live in Tokyo.

Rana Foroohar is CNN's global economic analyst as well as an associate editor for "The Financial Times."

Welcome back.

RANA FAROOHAR, CNN GLOBAL ECONOMIC ANALYST: Oh, thank you for having me.

VAUSE: OK. So these reciprocal tariffs on U.S. trading partners, there will not be dollar for dollar. But in the president's words they'll be more measured and kind. Here he is. (BEGIN VIDEO CLIP)

TRUMP: We will charge them approximately half of what they are and have been charging us. So the tariffs will be not a full reciprocal, I could have done that, I guess. But it would have been tough for a lot of countries. We didn't want to do that.

(END VIDEO CLIP)

VAUSE: So imports from more than 100 U.S. trading partners will be hit, with China hit hardest, 34 percent tariffs on top of an existing 20 percent tariff already in place, 26 percent for India, Japan 24 percent, 20 percent for the E.U.

This announcement went way beyond what many economists, investors and world leaders were expecting. So does that mean that the retaliation in kind will be more extensive than expected?

FAROOHAR: You know, I think it's going to vary country to country. It was way more than expected. It was very good politics for the president. You know, doing it with the United Autoworkers, showing the flash cards with the uneven tariff playing field. But boy, when you look at how this is going to hit allies I expect that there's going to be a really strong response from Europe.

If you couple that with, you know, the way in which the president has been giving NATO the back of his hand, I think that you're certainly going to see a reaction. I think it's going to vary in terms of developing markets, in terms of how much each individual country needs the U.S. market for its economic security and economic growth.

This is the chip that President Trump has to work with. He is using the U.S. consumer market as this enormous chip on the global poker playing table of the economy as we know it. And it is a high stakes game, John. I think the next few days are going to be very rocky in the markets. I think they're going to be rocky geopolitically and we're doing an experiment that we haven't done in half a century or more.

VAUSE: Still, the president calls it liberation day, which he says will bring nothing but rainbows, lollipops and happy days for Americans. Others, though, are not too sure about that. Listen to this.

(BEGIN VIDEO CLIP)

ARTHUR LAFFER, CONSERVATIVE ECONOMIST: What really concerns me here is what is the long run effect? Will there be retaliation? What will spread to other products as well? You know, we have experienced historically is what can happen if there is retaliatory measures, trade war. We know what happened in 1929, 1930 and the crash it was literally the Smoot-Hawley tariff that caused the Great Depression.

(END VIDEO CLIP)

VAUSE: There's also concerns over inflation and now stagflation. So if you were to game out which way this goes, what are the chances we'll get lollipops and rainbows or a global trade war leading to another great depression?

FAROOHAR: Oh, golly, John, you've really set me up for success with that question. I'm going to shoot for the middle.

VAUSE: Yes.

FAROOHAR: Look, I want to take a step back and say that when we saw tariffs in Trump one from 2018 to 2019, there wasn't inflation and there wasn't a global trade war. But what was different? That was one country. It was China. It was something that frankly a lot of allies agreed with.

This is very different. This is Trump saying I am going to overturn the Bretton Woods system. I am going to overturn globalization as we've known it really since the post-World War II period. It is really hard to say how things are going to go. He's making a tremendous bargain that may end up being the defining, I think it will certainly be the defining moment of his presidency. I'm hoping it doesn't push the U.S. and the world into recession.

VAUSE: It's important to note here, though, that not all tariffs are necessarily evil and bad.

FAROOHAR: Yes.

VAUSE: I mean, there is a way of using tariffs which can be of great benefit to your economy.

FAROOHAR: I'm glad that you mentioned that because I have actually long said that tariffs are one tool in the toolbox that economic policymakers have. And, you know, you can make a case, as Trump did really quite well in some ways, holding up flashcards and saying, you know, look, the U.S. has an average tariff rate of 3 percent on the rest of the world. Europe is 5 percent, China is 10 percent.

Some products and companies are far higher into the high double digits. You know, all of this is true. And it is also true that we don't know what the implications are going to be for imports, exports.

[00:15:03]

You know, the complex supply chains like the auto supply chain, for example, where you have incredible amounts of inputs coming across borders and you just don't know what the effects are going to be yet. Again, it's an experiment. We have not done this in a half a century.

VAUSE: Very quickly, do we need to have this experiment?

(LAUGHTER)

FAROOHAR: It's a great question. I would have liked to have had this experiment with Europe and Canada and Mexico saying we would like to have a shared approach to Chinese mercantilism, and we would like to think about constructive ways to rejigger the global trading system. I would not like to have had a war against adversaries and allies at the same time.

VAUSE: Good point to finish on, Rana. As always great to see you. Thanks for being with us.

FAROOHAR: Good to see you.

VAUSE: In Gaza, Israel's military is digging in, seizing and occupying large areas of territory while escalating the offensive on Hamas. Details in a moment.

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VAUSE: Israel's Prime Minister Benjamin Netanyahu is now on an official visit to Hungary, greeted by the defense minister on arrival in Budapest. Despite an arrest warrant for possible war crimes in Gaza issued by the International Criminal Court back in November, Netanyahu appears to be on safe ground in Hungary, which will not enforce that arrest warrant, despite being a signatory to the ICC.

Ahead of that visit, Netanyahu delivered a video speech announcing a military escalation in Gaza, planning to ramp up pressure until all hostages are released by Hamas. Israel's Defense minister was the first to announce a major expansion of the operation, which would involve the seizure of large areas of land in the territory. The announcements come as Israel continues its aerial bombardment of Gaza. At least 17 people killed in strikes in southern Gaza overnight Wednesday. Netanyahu says this is about the renewed offensive.

(BEGIN VIDEO CLIP)

NETANYAHU (through translator): Last night in the Gaza Strip we switched gears. The IDF is seizing territory, striking the terrorists and destroying the infrastructure. Because we are now dividing the strip and increasing the pressure step by step so that they will give us our hostages. And as long as they do not give them to us, the pressure will increase until they do.

(END VIDEO CLIP)

VAUSE: All up, 59 Israeli hostages are believed held in Gaza, 29 are still alive. In a statement, Israel's Defense minister says the expanded operation will also involve a large scale evacuation of Gaza's population from combat zones. There were no specific details.

The escalation of the strikes has sparked fresh anger among Palestinians, who are calling for an end to the war while lashing out at Hamas at the same time. There have been large crowds protesting in the streets in recent weeks, but one family says public criticism of the militant group cost a 22-year-old his life.

CNN's Jeremy Diamond has the story and a warning his report contains graphic images.

(BEGIN VIDEOTAPE) JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT (voice-over): Look, children, at what Hamas has done, this man shouts, as others gather around a body in prayer.

The man they are mourning is Uday Rabie, a 22-year-old Palestinian from Gaza City. Rabie's family says he was killed by Hamas militants, tortured to death for publicly criticizing Hamas. Rabie's brother, Hassan, told CNN his brother was abducted from the streets of Gaza City by a group of Hamas militants. Six hours later, he was handed over, barely alive. Cuts and bruises marking his back, arms, feet and face. Parts of his hair and one eyebrow shaved.

Rabie's brother says his body was delivered with a message. This is the fate of everyone who disrespects Al-Qassam Brigades and speaks ill of them, referring to the armed wing of Hamas. Rabie died hours later of his wounds.

You killed the boy, may God hold you accountable, one man shouts, as another fires into the air.

As his body is carried through the streets, the crowd erupts in chants, calling for Hamas to get out.

His family now demanding justice and retribution.

Hamas' government media office did not reply to a request for comment. And the Al-Qassam Brigades has not publicly commented on the accusations.

Rabie was killed a week after he and thousands of other Palestinians took to the streets in Gaza's largest anti-Hamas demonstration since the war began. Rabie had already scuffled with Hamas members a month earlier, his brother said, and feared Hamas would kill him.

They want to take me, they want to kill me, he said in this video. I don't know what they want from me. A week later, he was dead.

Jeremy Diamond, CNN, Jerusalem.

(END VIDEOTAPE)

VAUSE: Myanmar's military dictators have declared a 20-day ceasefire in its ongoing civil war with armed opposition groups. For nearly a week after a deadly earthquake the government continued its crackdown, sparking international criticism. More than 3,000 people have reportedly been killed so far in the earthquake. Hundreds more are now -- are still missing, meaning the death toll is expected to continue to rise.

Relief efforts have been hampered by the ongoing fighting, with the Red Cross warning access to health care and clean water is now severely limited.

Still to come on CNN, need a new car? Need one to get repaired?

[00:25:01] Americans may have to pay more for either service because of the new tariffs. Details just ahead.

(COMMERCIAL BREAK)

VAUSE: Welcome back. You're watching CNN NEWSROOM. I'm John Vause. Let's check today's top stories.

[00:29:54]

U.S. President Donald Trump has imposed sweeping new tariffs on at least -- of at least ten percent on almost all U.S. trading partners, but even higher rates for dozens of other countries he called the worst offenders.

The move is aimed at reinvigorating American manufacturing, but economists and others warn it will likely drive up prices for U.S. consumers and could throw the U.S. and global economy into a recession.

Myanmar's military dictators have declared a three-week ceasefire in the country's ongoing civil war after Friday's earthquake, which has now killed more than 3,000 people.

According to state media, the temporary truce with rebel groups is meant to give people time to mourn the dead and to improve rescue and recovery efforts.

Israel's prime minister, Benjamin Netanyahu, has announced a military escalation in Gaza. He says the increased pressure will remain on Hamas to release all hostages.

His comments follow an announcement by the defense minister that an expansion of the military operation in Gaza will involve seizing large areas of land and ordering residents to leave combat zones.

About 30 minutes ago, another new tariff came into effect: a 25 percent levy on cars imported into the United States. Just how quickly the increased prices will make their way through the new car market remains to be seen, but prices will eventually go up, possibly by thousands of dollars.

For more, here's CNN's Danny Freeman.

(BEGIN VIDEOTAPE)

ROSA SCOTT, SHOPPING FOR NEW CAR: I need to buy a new vehicle before the prices start going up too high.

DANNY FREEMAN, CNN CORRESPONDENT (voice-over): Rosa Scott has been eyeing this new Jeep Wrangler for a while. But when she saw the dealership packed over the weekend, she knew she had to act.

SCOTT: I really wanted to wait a couple of months, but it might be too much then.

FREEMAN: So, you -- you were hoping to wait a couple of months to buy this car, but you were worried about tariffs in particular?

SCOTT: Yes. I was worried about the prices going up.

FREEMAN (voice-over): David Kelleher is the owner of David Auto outside of Philadelphia, which sells mostly Stellantis vehicles like Dodge, Jeep and Ram. But he says new tariffs on imported vehicles will be felt across the industry.

DAVID KELLEHER, PRESIDENT, DAVID AUTO GROUP: When you're talking about GM, Stellantis Ford, these gigantic companies, we're going to be impacted. Make no mistake about it, even though we're American companies, we're going to be impacted.

FREEMAN (voice-over): For some, the feared impact means a race against the clock.

KELLEHER: I have a customer that ordered an $86,000 2500 Ram. If that can get on a train today, it will be without tariff. If it gets on the train tomorrow, it's going to have a 25 percent tariff. That $86,000 car becomes a $103,000 car overnight. And that customer, he's going to turn to me.

I'm most likely going to eat that. That's a $20,000 hit.

FREEMAN (voice-over): For others, smaller changes add up fast. Take this new Jeep Compass: American car, assembled in Mexico. It costs around $30,000 today, but with a 25 percent tariff, Dave explained, these cars could suddenly cost as much as $37,500.

KELLEHER: That kind of change in a price moves that payment $175 a month. And our customers, they're middle-class people. They just can't afford that kind of bump.

FREEMAN: What would you advise someone who's looking to buy a car? Should they go out and buy it today?

AARON BRAGMAN, DETROIT BUREAU CHIEF, CARS.COM: That has been our advice: is to go out and get a vehicle, frankly, as soon as you possibly can.

FREEMAN (voice-over): Aaron Bragman with Cars.com says it's crucial to remember American-made cars will also be impacted, as most cars assembled stateside use parts from overseas, which are expected to be tariffed, as well.

BRAGMAN: It's not going to just impact new car prices. This is going to impact repair costs, as well. So, it's -- it's a knock-on effect these tariffs are going to have, not just in buying a new car.

It's in maintenance. It's in ownership costs. It's a number of different areas that are going to, quite frankly, cost American consumers.

FREEMAN (voice-over): Across the country, customers said they were buying cars early due to the tariffs. UNIDENTIFIED MALE: Just knowing that tariffs went into effect, and

it's real, now, I know that it's something I don't have to think about anymore.

FREEMAN (voice-over): But Kelleher is now worried for American workers who rely on imported cars for jobs.

KELLEHER: I think what the president is trying to do is admirable: bring in more jobs to the United States, you know, bolstering the industries in the United States. This is great, great, great stuff.

But I'm telling you right now, the impacts of these tariffs are going to make Americans lose jobs. There's no doubt about it.

FREEMAN: Now, one important thing to note, from experts and this dealer that I spoke with, is the cars that are on this lot and lots all over the country right now, they're here right now. They got into the states prior to these tariffs going into place.

So, in theory, you should be able to get some cars that are on lots for pre-tariff prices. So, if you're concerned at all that you might have missed the boat when it came to some of these price increases, don't worry. There still may be a little bit of time to get a deal in.

Danny Freeman CNN, Glen Mills, Pennsylvania.

(END VIDEOTAPE)

VAUSE: Just ahead here on CNN, the very latest on powerful thunderstorms and severe tornadoes sweeping across the U.S. South and Midwest.

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VAUSE: Seventeen million Americans from Ohio to Texas remain under tornado watches at this hour.

After a large and destructive tornado moved through parts of Arkansas Wednesday, at least five houses were destroyed and power lines brought down in one city alone.

A line of severe thunderstorms was also seen tracking through parts of the Midwest.

And across Missouri, Mississippi, Arkansas, and Indiana, more than 200,000 customers have been left without electricity because of the severe weather.

I'm John Vause. Thanks for watching. Back at the top of the hour with more CNN NEWSROOM. But first, WORLD SPORT starts after a very short break. See you back here in about 20 minutes.

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