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Trump Tariffs Overhaul Century of American Trade Policy; U.S. Markets to Open after New Trump Tariffs; Price Spikes Expected with new 25 Percent Tariff on Imported Cars; Trump's Tariffs Spark Global Stock Selloff; Jose Mourinho Grabs Rival Coach by the Nose. Aired 9-10a ET

Aired April 03, 2025 - 09:00   ET

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

[09:00:00]

(COMMERCIAL BREAK)

CHRISTINA MACFARLANE, CNN HOST, CONNECT THE WORLD: A live look at a New York port. Global shipping carries on this Thursday, less than 24 hours

after President Trump announced -- announcement upended global trade as we know it. It is 09:00 a.m. in New York. It's 02:00 p.m. in London. I'm

Christina Macfarlane, this is "Connect the World".

Also coming up, global markets reacting to the new Trump tariffs as concerns grow over a possible recession. And Hungary pulling out of the

International Criminal Courts as the country hosts Israel's Prime Minister in Budapest. Meanwhile, Prime Minister Netanyahu has announced a military

escalation in Gaza aiming to take control of the Morag Corridor.

And the stock market in New York opens in about 30 minutes from now, and we are going to be watching closely. Those futures started tumbling almost

immediately after President Trump announced global tariffs that upend almost a century of U.S. trade policy and threatened to escalate a global

trade war.

Here you can see them as they stand. He's slapping 10 percent tariffs on almost every country, and much higher ones on countries he calls the worst

offenders, including hikes of 34 percent on goods imported from China, added to existing tariffs and 20 percent on imports from the EU, the 10

percent rate for most other countries is a baseline and subject to change.

Well, the president calls the tariffs a declaration of economic independence. His top economic advisers say they're meant to bring jobs

back to the United States, and the country will ultimately benefit. The U.S. Vice President says the tariffs are long overdue.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: We borrow money from Chinese peasants to buy the things those Chinese peasants'

manufacture. That is not a recipe for economic prosperity. It's not a recipe for low prices, and it's not a recipe for good jobs in the United

States of America. For 40 years, we have gone down that pathway.

We've seen closing factories, we've seen rising inflation. We've seen the cost of housing so high that most Americans can't afford to buy a home

right now. President Trump is taking this economy in a different direction. He ran on that he promised it, and now he's delivering.

And yes, this is a big change. I'm not going to shy away from it, but we needed a big change, Lawrence. We cannot keep going down the Joe Biden

globalist pathway where we have $2 trillion of peacetime debt and deficits. We have manufacturing disappearing, that is not working for Americans.

We've got to take this country in a different direction.

(END VIDEO CLIP)

MACFARLANE: Analysts have a different view of the tariffs warning of skyrocketing prices and a looming global recession. One of them calling the

announcement worse than the worst-case scenario for Wall Street. And global stocks have been lower today ahead of Wall Street's opening the EU along

with China and other countries vowing to take counter measures to respond.

Well, let's dig into the global impact of these tariffs with CNN Politics Senior Reporter Stephen Collinson in Washington, along with Marc Stewart in

Beijing and Melissa Bell in Paris. Welcome to you all. So, Stephen, the reality here, I think, is a lot worse than anyone had predicted.

185 countries hit by a vast array of tariffs that now are going to threaten global stability just break down for us, Stephen, the impact, first in the

short term, and then as we look to the future.

STEPHEN COLLINSON, CNN POLITICS SENIOR REPORTER: Well, Donald Trump was elected in large part because he promised to get high prices for groceries

and housing down those prices are frustrating very many Americans. The most likely scenario in the short term is that those prices are actually going

to go up further, because almost everything that Americans buy that is an import, which is almost everything, in many cases, that the price of those

things is going to increase.

So that's going to cause immediate financial pressure for millions of families. We'll see whether that translates into political pressure for

Donald Trump and the Republicans. The Vice President J.D. Vance, who you heard there, isn't wrong. It is true that globalization, fundamentally

hollowed out much of U.S. manufacturing.

It does have very bad economic and social effects in many areas of the country, especially those Midwest swing states that Trump won to win re-

election. The problem is, is that the process of reviving those economies, which Trump is trying to do with tariffs that could take years, if not

decades.

No one I've interacted with who has economic expertise, who works in business over the last few hours thinks that there is any possibility that

manufacturing is going to come back up the levels at which it was, say, 30 years ago.

[09:05:00]

MACFARLANE: Yeah, certainly not within this term of Donald Trump. Marc, we've been seeing reaction coming in internationally, hour by hour. China

was very quick with a strong rebuke to the Trump Administration, accusing them of unilateral bullying. But has there been any action yet in terms of

actual retaliation?

MARC STEWART, CNN CORRESPONDENT: Right, Christina, China has said it will fight back. But if this is a war, if this is indeed a trade war, China is

not revealing, at least just yet, how and when it will strike back. In fact, all day today, we heard a lot of themes about discussion, about

diplomacy, about reconsideration.

But if it comes to a point where China deems it necessary to show its force, it certainly has an arsenal of options that includes further tariffs

against American agriculture products. China imports a lot of soybeans from the United States, and further tariffs imposed by China really could impact

farmers.

It could impact Middle America. It could support. It could really hurt some of the communities that Donald Trump has seen some support. So that's

something we're certainly going to be watching for. We certainly have an economics argument to all of this, but there's also ego.

In fact, we heard from one analyst today who brought the point, who is going to cave in first? Who is going to be the one who really falls into

all of this? Will it be Xi Jinping or will it be Donald Trump? There's a lot of ego involved. Nonetheless, all of this uncertainty is not voting

well for the markets.

At least here in Asia, we saw declines across the board, including Japan. Not a big surprise, Christina, considering Japan is home to the auto giants

like Toyota and Honda, certainly impacted by those auto tariffs in particular.

MACFARLANE: Yeah, very much so. Melissa, turning to you, there has been strong and swift reaction out of Europe to all of this as well. What are

European leaders? What have they been saying in the last hours?

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, a great deal of outrage, of course, has been expressed, but now we're hearing more from

officials within the European Commission about just their surprise at how the United States has come to this 20 percent figure that it has when it

comes to the EU explaining.

And I quote that by using the American methodology, if there is such a methodology, said this EU official, the figure would not be 20 percent it

would be closer to 1.5. So, there are a lot of questions at the most senior levels of the European Commission, how this figure was come to it all.

They also point out, and these figures are pretty staggering, if you look at the three rounds of sanctions, so the steel and aluminum, the cars and

at this latest round announced from the Rose Garden yesterday, by way of this 30-page document delivered to the Europeans yesterday.

The tariffs that will be applied on the EU come out at 70 percent of all European exports towards the United States. That is 380 billion euros worth

of goods now. The European Union is preparing to strike back very heavily, not as you would expect. For instance, when it comes say to soybeans that

Europeans need to source them from Brazil rather than the United States.

Because, of course, this is also about protecting Europe and its markets and the needs of its citizens, or motorcycles from Yamaha in Japan rather

than a Harley Davidson in the United States. They're preparing to go much further than that with certain measures. Someone discovered described as

the bazooka instrument, a relatively obscure European instrument that would allow them to go after the revenue of American banks.

They would look at targeting the tech giants that makes 30 percent of their profits in the EU by tightening the Digital Services Act. They have all of

these weapons up their sleeve. Of course, they point out over and over again, this is not a war that we wanted. It's not a war that we started.

And we're hoping that negotiations will help those high-level negotiations begin tomorrow, but first, they need to get through what they say, some of

the mistakes that have been made in this 30-page document, some goods that counted under that first round of steel and aluminum tariffs that are being

doubly tariffed, because they have been re announced as part of these latest reciprocal tariffs announced yesterday.

So, there is a great deal of puzzlement. They say there are errors in the document that they want to clear up even before they start the

negotiations. And then if the negotiations fail, they are preparing to hit back very hard themselves, Christina.

MACFARLANE: Stephen with all of what Melissa has just been saying, Marc too, about retaliation, it was interesting to hear Treasury Secretary Scott

Bessent this morning urging countries to, quote, sit back, take a take a deep breath before taking any decision.

I mean, the Trump Administration this morning really putting out the warning signs on countries not to retaliate, but that's pretty pie in the

sky, isn't it? How prepared do you think the Trump Administration are for what's coming?

COLLINSON: I think the treasury secretary's comments reflect the fact that he's someone that's come from outside politics, because the chances of a

foreign leader being able to sit back and say, well, let's just see what happens when their country, their workers and their economies have come

under attack.

[09:10:00]

Is, as you say, completely unrealistic. The problem here is it's not just that Trump has put on these tariffs. It's months of pressure, of threats,

not just in the economic sphere, but in terms of foreign policy. So even if he turned around now and said, well, I'm prepared to negotiate, or I'm

going to take off some of these tariffs, I've changed my mind.

A lot of the damage has been done with respect to the United States and its allies, or perhaps in some cases, its former allies. Countries are now

starting to think that the United States is not a reliable partner in trade and other issues, we have to make our own arrangements.

We've seen that in Europe. I think you're going to see increasingly in trade, all of these countries are going to be free trading with each other,

while trade with the United States is going to be subject to tariffs. So, they're going to find workarounds in many cases, and I don't think that the

administration has quite appreciated that fact, because the thinking inside the White House is that the U.S. is the biggest economy.

Every single confrontation the other side will come off worse because they're a smaller economy. But now the United States is going to be facing

trade reprisals from all biggest trading partners, Europe, China, Canada, Mexico. That's quite a hit for one economy to take. However strong it is.

MACFARLANE: It's a really good point, Stephen. And Marc, to that point, what are -- what is China's view as to the opportunity that exists here?

You know, as business leaders look to switch up to perhaps from the U.S. market to the China market, in search of some stability.

STEWART: Right. Whether it's politics or economics, China, especially in this Trump Administration 2.0 is trying to portray itself as a stable

partner in the world stage. We certainly have seen that from a political front, and now we're seeing this in an economic front.

China has been very forward thinking even before these tariffs were implemented. We've seen China establish new relationships in other parts of

the world, besides this import-export relationship with the United States. It's really strengthened its bonds with Southeast Asia, with Europe, with

Africa, with Latin America.

It's of interest to point out that China right now is selling the world's most popular EV, BYD, outpacing Elon Musk and Tesla in sales. But what's so

notable about that is China has been locked out of the U.S. market these vehicles BYD because of such strong tariffs already in place, it's really

hard for it to break through into the United States.

Just doesn't fiscally make sense. Yet, despite that barrier, it has formed an ally of nations, an ally of buyers and all these other parts of the

world, allowing this particular brand to thrive. So, look for China to continue this outreach to other parts of the world, besides the United

States and besides North America, and as we are seeing it, is having economic success on that front, Christina.

MACFARLANE: Yeah. And finally, Melissa, the EU response will really depend on how tightly its 27 members all line up on a common strategy, because any

trade war that they initiate with the United States is ultimately going to result in job losses for Europe. How unified at this moment do the European

trading bloc appear to be?

BELL: They've been pretty unified in the preparation of these scenarios, certainly, and at the heart of their messaging is very much that the crown

jewel in the European Union is their single market. So that unity the 450 million consumers that they represent, and that is what they intend to use

as a weapon in their arguments, their negotiations with the United States.

They feel that it gives them great strength. And we know that historically, the United European Union has never been stronger than faced with a common

threat, an enemy. And they believe that by acting together. They can make themselves heard much stronger they are, after all, as a bloc, the largest

trading partner in the world that the United States has.

And Ursula von der Leyen has been pointing out the many jobs and all the prosperity that has derived from those many decades of functioning as

allies so brutally brought to a stop. But certainly, for the European Union, they believe that as a bloc, they have a lot of tools up their

sleeve that will make them much more powerful than if they had to act as individuals.

And I think that's also behind why you're hearing a lot of the very aggressive rhetoric coming from the commission. They're quite cross. They

feel very betrayed, but they also feel very confident that they're in a position to fight back, Christina.

MACFARLANE: Yeah, all right, Melissa, Stephen, Marc, we really appreciate all of you being here as we continue to watch these events evolve,

appreciated.

[09:15:00]

Thank you. Now President Trump's tariffs seem to be hitting some of the world's poorest nations. While they're being touted as reciprocal, it

appears they target countries that export more to the U.S. than they import. Some of those countries, like Madagascar, Mozambique and Syria,

rank among the world's 26 poorest economies.

One of the countries with the highest tariff rates is Myanmar in Southeast Asia. It is being hit, as we know, with a 44 percent tariff even as it

recovers from last week's deadly earthquake. Still to come, Hungary says it wants out of the International Criminal Court says it gets a visit from a

wanted man, the Prime Minister of Israel.

(COMMERCIAL BREAK)

MACFARLANE: Attorneys for Turkish students arrested at Tufts University in Massachusetts are making new accusations against the U.S. government. They

say Rumeysa Ozturk was removed across multiple -- was moved across multiple state lines as part of a highly unusual and secretive attempt to keep her

away from her legal team.

The attorneys say the government targeted Ozturk because of her advocacy for Palestinian rights. Nearly a dozen college students and faculty members

across the U.S. have been detained by federal agents, including Mahmoud Khalil. The Trump Administration accuses him of being a Hamas sympathizer.

Secretary of State, Marco Rubio defended the crackdown, saying student visas will be revoked for anyone involved in activities that accounted to

U.S. national interests. Hungary says it is pulling out of the International Criminal Court as the country hosts Israel's Prime Minister

in Budapest.

Benjamin Netanyahu, is wanted by the ICC had issued an arrest a warrant for his arrest last year on suspicions he was responsible for war crimes and

crimes against humanity in Gaza. The trip is seen as a direct challenge to the court, which doesn't have its own law enforcement powers.

Instead, it relies on member states to make arrests and bring suspects to The Hague. CNN's Jeremy Diamond is in Tel Aviv, Israel following this all

for us now. And Jeremy, we know Hungary have been very critical of the ICC in the past. So, was this move somewhat expected?

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, we certainly knew that they were going to welcome the Israeli Prime Minister with open arms on

their territory, despite the fact that they have been members of the Rome Statute, and under that statute, would be required to arrest him, given

that he has an active ICC warrant against him since May of 2024.

But we didn't know that Hungary was going to actually withdraw from the International Criminal Court altogether, and that is exactly what the

government of Hungary announced yesterday, and which Prime Minister Orban commented on directly today, saying that the Hungary is going to be

withdrawing from the International Criminal Court because he believes it has become a quote, political tool.

[09:20:00]

The Israeli Prime Minister obviously praising that decision today and continuing to attack the International Criminal Court and its warrant

against him, as well as the Former Israeli Defense Minister, Yoav Gallant as pure antisemitism. We should note, of course, that this is really the

only country on European soil where the Israeli Prime Minister has been able to go safely since this warrant was issued last May.

He hasn't traveled to any European country since then, because so many of them are indeed members of the International Criminal Court. And several of

them have indicated that they would indeed be required to carry out his rest, if indeed he set foot there. But certainly today, the Israeli Prime

Minister getting a warm welcome from a prime minister who he considers to be very much his kin, ideologically in a number of ways.

And also, some Israelis today drawing parallels between some of the anti- democratic moves that the head of Hungary has taken and some that the Israeli Prime Minister is taking here in Israel as well.

MACFARLANE: Yesterday, Benjamin Netanyahu announced a military escalation in Gaza. Are we learning any more about the scale of Israel's plans?

DIAMOND: Well, we know that there are Israeli ground troops now pushing deep into southern Gaza. Yesterday, they encircled the Tall as-Sultan

neighborhood of Western Rafah in the southern part of the Gaza Strip. And the Prime Minister has made quite clear that Israeli troops plan to move

all the way up to what he is calling the Morag axis, which lies just north of Rafah, between the City of Rafah and the City of Khan Yunis.

And it appears that this would be another way for Israel to be able to divide up different sections of Gaza, effectively splitting Gaza into three

if you consider what they have done in northern Gaza with the nets are in corridor which has separated northern Gaza from the rest of the strip.

This new corridor would now separate southern Gaza from the rest of the strip, effectively dividing Gaza into three sections. And it seems that the

intention is to push all of Gaza's civilians into a narrower part of the Gaza strip in the central portion of that area. The Israeli military has

also said that the intention is to get civilians away from the areas in which they will be operating most intensively on the ground.

Certainly, there have been evacuation orders issued for that part of southern Gaza. But we know, of course, that the air strikes that have been

taking place are not just happening in those evacuated areas. They are very much happening in populated areas as well. Just today alone, more than 40

people have been killed in Israeli airstrikes, and once again, we are continuing to see civilians be part of those killed.

MACFARLANE: All right, Jeremy Diamond there live for us in Tel Aviv. Thank you. And we're turning back to today's top story, President Trump's new

tariffs are making some Americans think about making some bigger purchases sooner, rather than later, that 25 percent tariff now affects all imported

vehicles, which could mean the difference between someone owning or leasing a car.

CNN's Danny Freeman spoke with customers and the president of a dealership in Pennsylvania about how the tariffs may affect them.

(BEGIN VIDEOTAPE)

ROSA SCOTT, PENNSYLVANIA CAR BUYER: 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 ask.

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

FREEMAN: So, you were hoping to wait a couple 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.

DAVE KELLEHER, PRESIDENT OF DAVID AUTO GROUP: When you're talking about GM, Stellantis, for 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 $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, they've explained, these cars could suddenly cost as much as $37,500.

[09:25:00]

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 today?

AARON BRAGMAN, DETROIT BUREAU CHIEF OF 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 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,

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, bringing more jobs to 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.

(END VIDEOTAPE)

FREEMAN (on camera): 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 that all of 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.

MACFARLANE: All right, coming up, it looks like it's going to be a tough day on Wall Street. Markets opening in just a few minutes. We will see how

investors respond to President Trump's tariff blitz.

(COMMERCIAL BREAK)

[09:30:00]

MACFARLANE: That was the opening bell. The U.S. stock market is open, and we are going to give those U.S. markets just a few minutes to settle here,

but we know that investors are clearly shaken by the most aggressive American tariffs we've seen in a century. Let's have a look at how the

European markets are faring.

Here in London, the FTSE is down more than 1.5 percent things looking even worse as we move into the European Union, major market indices in Germany

and France facing steep losses. Moving over to Asia, Japan taking the hardest hit, the NIKKEI closing 2.8 down.

The Hong Kong benchmark also sunk sharply, down 1.5 percent. Wendy Cutler is the Former U.S. Deputy Trade Representative under Obama Administration.

And CNN Business Editor-at-Large Richard Quest is joining us now live from New York. Richard, I want to get to you first.

We just had the opening bell there a moment we have been waiting for. Give us some context on the early numbers that you're seeing.

RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: Horrible.

MACFARLANE: Yeah.

QUEST: Awful. I mean, the U.S. Vice President said this morning on Fox and Friends, the new Trump policy. Yes, it's a big change. I'm not going to shy

away from it, but we needed a big change, and that's the result. We needed a big change, and you got it. This is a wholesale rewiring of the global

trade environment, the plumbing the economics of global trade.

And this is what happens when you do it overnight by fiat, with no discussion, no consultation. You take everybody by shock and storm, you're

going to see -- and what is this pricing in? This is pricing in. Number one, the inflation that's going to come across as a result of higher import

costs into the U.S.

Number two, the much higher costs of exports as countries retaliate. Number three, the slowdown in economic growth as uncertainty weighs on every

investor, CEO, business leader who refuses to take a decision. And as a result, at least until we get clarity on whether these tariffs are coming

in, in the way that they have been promulgated

This is what we can expect this market. And I don't know whether Wendy would disagree, but for me, this market reaction this morning makes perfect

common sense.

MACFARLANE: Yeah, I would never disagree with you, Richard, but Wendy, let me turn to you. We have been hearing from members of Trump's Administration

this morning, coming out trying to defend these measures, issuing warnings to trading partners not to retaliate.

We heard from U.S. Treasury Secretary Scott Bessent, who spoke to CNN's Kaitlan Collins last night, comparing these tariffs to an ice cube. Just

have a listen to this.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, U.S. TREASURY SECRETARY: That's why, in the past, I've called tariff policy done properly is a shrinking ice cube, because what

will happen, we will start out with high tariff income, but then as the factories come to the U.S., we will have more business income, and we'll

have more paycheck income, because American workers will be earning. So, you would see it's a rebalancing.

(END VIDEO CLIP)

MACFARLANE: And Wendy, does that logic hold up to you?

WENDY CUTLER, FORMER ACTING DEPUTY U.S. TRADE REPRESENTATIVE UNDER OBAMA ADMINISTRATION: No, it does not. I think the administration is trying to

convince us there will be short term pain. We're seeing that now, but in their view, there will be long term gain. It's hard to see how that long

term gain is going to take hold, because the immediate impacts, the short- term impacts are going to be devastating not only to the U.S., but to the global economy.

And my fear is that other countries now have gotten the message that we're not a reliable partner, and they are going to accelerate efforts to work

among themselves and kind of keep us out of the club.

MACFARLANE: Richard, when we look ahead at the long-term effects of this, how panicked should the American people be about the projection for the

economy this year? Are we looking to a recession by the end of the year? What do you say?

QUEST: Goldman has it about 35 percent I suspect once we now see these numbers factor in, that will probably go higher. Listening to what the

treasury secretary said, the key two words when he is talking about the ice cube tariff effect was when done properly. Done properly.

[09:35:00]

Now the effect of this is it's not being done properly. The long-term effect that Wendy is talking about, if you go back to 1890 when the tariffs

were told were put on because of steel, back in 1890 it took best part of 12 years before there was a rebalancing completely of the tin market in

America's favor.

So, it's going to take many years to redress imbalances as a result of this trade policy. It's not overnight. The damage from the tariffs happens

today. The benefits from the tariffs may not be seen for 5, 10, 15 years, if at all, if we look at precedent, and I'm talking about solar panels, I'm

talking about aluminum and steel, both of which came from the last Trump Administration, and neither of which recovered within the next 4 to 6

years.

MACFARLANE: Wendy, we've been hearing from the members of the Trump Administration that this is all going to be one big tax cuts for the

American people. But let's be clear, these tariffs are not going to impact perhaps the top 10 percent, they're going to hit the middle classes, the

lower class, those on a fixed income. What is the outlook like for them?

CUTLER: Well, exactly, you know, the prior tariff actions taken by the Trump, Obama, Biden Administrations. We're more targeted, and frankly,

excluded those consumer products, but with the tariffs that were announced just yesterday, they're going to be hitting all products and so bicycles

and food and makeup and everything. I mean, it's just going to hit the average consumer quickly and severely.

MACFARLANE: -- is this a bit of a random tangent, but something I was interested in, because we saw that the Trump Administration actually

published an executive summary of how they reached these numbers, these various terrorist numbers. I tried to understand it. I couldn't.

QUEST: You didn't need to. On Twitter yesterday, somebody pointed out that what they'd done. What they'd done is take deficit divided by exports and

divide by two, and that's how they got the number. And if you go that across the chain, that seems to be the way they did it.

Last night, the USTR, I don't know whether we have a graphic of it. The USTR came up with this extremely complicated formula with delta, beta,

theta, all within it. But then this morning, everybody has just run that formula through AIs.

And guess what? If you run the formula through eyes, the beta and the delta come back to exactly the same thing, exports divided by a trade deficit

divided by two. So, it looks as if it, that's the way the wind's blowing. That's what the number is.

MACFARLANE: Well, let's hope they're probably hoping --

CUTLER: -- I --

MACFARLANE: Yes, go ahead, Wendy.

CUTLER: -- you know, these are not really reciprocal tariff measures, because no one was looking at the tariff rates for looking at the deficits

and the exports. We were told that these tariff rates would also take into account, for example, subsidies and taxes and non-tariff measures. None of

that was on the table for this calculation.

MACFARLANE: Well, I guess they're hoping no one reads the small print too closely. Wendy Cutler, Richard, great to have you both. Thank you. All

right, coming up in sports, the bizarre altercation that kicked off between two top football coaches at Wednesday's big game in Turkey.

(COMMERCIAL BREAK)

[09:40:00]

MACFARLANE: The clock is ticking for TikTok with no apparent solution to avoid a ban in the U.S. this weekend. If it seems familiar, it's because we

have been here before. President Trump extended a similar January deadline to this Saturday, forcing TikTok's parent company, to sell its U.S.

operations due to national security concerns over its Chinese ownership.

President Trump even suggested reducing tariffs on Chinese imports as part of a sale. Now, in the world of sports, superstar Football Manager Jose

Mourinho landed himself in hot water after a final whistle in his Fenerbahce side game on Wednesday, instead of the usual handshape with the

opposition, this happened.

Mourinho appearing to oh, look at that grab Galatasaray Boss Okan Buruk knows following a narrow defeat for his team. Amanda Davies is here to

explain or why he did it --

AMANDA DAVIES, CNN WORLD SPORT: Please don't ask me that question. Of all the things I am able to talk about. I mean, that is something we are not

used to seeing on the touch line. We're used to seeing Jose Mourinho celebrating, remonstrating, grabbing the headlines out of press

conferences.

He has been known to poker, an opposing manager in the eye. This is something entirely different, isn't and it reminds me to remember that

Mario Balotelli meme. Why always me?

MACFARLANE: Yes.

DAVIES: Well, there is something about Jose Mourinho putting himself in this melting pot that is one of the hottest, most kind of contested leagues

in the world in Turkey, all the emotion between Fenerbahce and Galatasaray, you then throw him in the mix, and it is explosive.

And we're talking about what it means. What next for him, in just a couple of minutes here in "World Sport".

MACFARLANE: Look forward to that. Amanda up in just a moment, stay with us. We'll be back after this quick break.

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