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Trump Calls Tariffs "Declaration of Economic Independence"; Steep Drop for U.S. Stocks in Early Trading; Trump's Tariffs Spark Global Stock Selloff; Hungary Announces Withdrawal from International Criminal Court; U.S. Will Remain in NATO, Wants Alliance to Be Stronger, per Secretary of State; Lawyers for Tufts Student Accuse Government of "Secretive" Ploy; Intelligent Future: ; Russia Omitted from Trump Tariffs. Aired 10-11a ET
Aired April 03, 2025 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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CHRISTINA MACFARLANE, CNN ANCHOR AND CORRESPONDENT: Welcome to our second hour of CONNECT THE WORLD. I'm Christina Macfarlane in London.
We were promised a day to remember and so far it's looking like the day that tanked the stock markets. We will have all the reaction to president
Trump's barrage of tariffs against the whole world, from a day of pain for investors to threats of retaliation by America's trading partners.
Plus, Hungary says it will pull out of the International Criminal Court as the prime minister welcomes Israel's Benjamin Netanyahu, who the court
wants to put on trial.
And Marco Rubio tells America's allies the U.S. isn't pulling out of NATO. In fact, Washington wants to be stronger. Some European leaders seem
skeptical.
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MACFARLANE: "Brace for impact."
That is one economist's message to the world after U.S. president Donald Trump's announcement of sweeping global tariffs. And you can see one of the
earliest impacts happening right now on Wall Street, a half-hour into the trading session.
Stocks are sharply lower as investors digest analysts' warnings that the tariff, the tariff will tank economies and spark a global recession.
Well, president Trump is slapping 10 percent tariffs on almost every country and much higher levies on countries he calls the worst offenders.
He called the tariffs "a declaration of economic independence," as he emphatically broke down the numbers on Wednesday.
(BEGIN VIDEO CLIP)
TRUMP: Sixty-seven percent. So we're going to be charging a discounted reciprocal tariff of 34 percent. You think of European Union, very
friendly. They rip us off. It's so sad to see. It's so pathetic; 39 percent. We're going to charge them 20 percent.
Japan, 46 percent; they would charge us 46 percent and much higher for certain items, like cars, you know, little items like cars; 46 percent,
we're charging them, 24 percent.
Cambodia. Oh, look at Cambodia, 97 percent. We're going to bring it down to 49 percent.
United Kingdom 10 percent. And we'll go 10 percent.
South Africa, aww, 60 percent, 30 percent.
(END VIDEO CLIP)
MACFARLANE: Well, the global reaction has been quick and blunt. Here's what key figures out of Europe and Japan are saying.
(BEGIN VIDEO CLIP)
YOSHIMASA HAYASHI, JAPANESE CHIEF CABINET SECRETARY (through translator): Following this announcement, we have once again conveyed to the U.S.
government that the recent measures are extremely regrettable and have strongly requested that they be reconsidered.
URSULA VAN DER LEYEN, PRESIDENT, EUROPEAN COMMISSION: President Trump's announcement of universal tariffs on the whole world, including the
European Union, is a major blow to the world economy.
(END VIDEO CLIP)
MACFARLANE: Well, China, which now faces a 54 percent tariff on goods, imports to the U.S., describes the tariffs as a bullying practice and is
vowing to respond.
Here's a look at what's happening in European markets. And you can see the major indices sharply lower. Most Asian markets closed with steep losses
today. Richard Quest, CNN Business Editor at Large and anchor of "QUEST MEANS BUSINESS" is back with us this hour to break it all down.
Richard, let's take another look at those U.S. stock market numbers, because we know the U.S. stock market has been bracing for impact. Some of
the losses are baked in.
But what are your expectations for how we're going to see this fluctuate in the days ahead?
RICHARD QUEST, CNN HOST: OK. I think in the days ahead, we just don't know. It will depend on whether or not some of these tariffs are reversed,
what the negotiations look like, whether the administration moves.
Because, again, I'm just looking. Look, just bear with me. I'm just looking around my studio here. So here's some hair spray. This is -- I don't know
where it's come from or where it was made. But my guess is this is just about 20 percent more expensive.
This has come from China. It's Amazon Basics. This is probably about 37 percent more expensive.
Pens, 15-20 percent more expensive. An iPhone, maybe 15-30 percent more expensive.
Now that is the reason why you're seeing the market give this reaction, because suddenly inflation is going to get harder, which was coming down in
the United States. It's going to suddenly go up. The Fed will not be able to cut interest rates.
You're going to see a much greater slowdown in economic activity simply because people are frightened. And if you then multiply that by worries of
what's happening with job losses, federal government restructuring, you can start to see why Goldman Sachs now believes there's a 40 percent chance of
a recession in the United States.
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Those are the numbers you're seeing in the market. This is a straight cause-and-effect. There is no mystery as to why this market is falling so
far and so fast today.
MACFARLANE: Yes. And, Richard, away from the main U.S. markets, I'm sure you've already seen some of the day's big fallers. And we have, I think, a
graphic we can pull up just to show some of these steep losses.
As you can see here, Apple, Nike, Amazon -- so Apple, Richard, down as much as 9 percent, which translates to more than $200 billion wiped off its
value in, what, half an hour?
QUEST: Right. So let's go to the reasons why Apple, where are the phones made?
Never mind that it says on the back of the phone, engineered in Cupertino, USA.
Where are they made?
China and other places in Southeast Asia.
Suddenly the tariff of, what is it, 34 percent?
Nike, where are the shoes and apparel made?
Vietnam, which is one of the highest tariffs, something like 47 percent is the tariff that's going on now on Vietnam goods coming into the United
States.
And bear in mind, much of the production from all these companies went to these countries to avoid the tariffs in China. And then you've got Amazon.
Amazon, not surprisingly, because Amazon, of course, imports from all -- Amazon imports from every single country around the world. That's why it's
going to be hit.
None of this should come as a shock. This is because there's a slowdown going to take place. Every one of these products is going to be hit. And as
a result, there will be lower profits for everyone, which then translates to shareholders, which then translates to dividends.
And the whole cycle becomes, instead of a self-fulfilling prophecy, a self- defeating spiral down.
MACFARLANE: And as reality bites, Richard, are we going to be seeing, in the hours ahead, exemptions for businesses, for corporations?
I know Donald Trump has said no exemptions for trading partners, for kings, queens, presidents, prime ministers.
But for businesses themselves, are we going to be seeing movement there?
QUEST: We don't know. I mean, I wish I could tell you. I -- we just don't know because we don't -- we -- obviously what happened yesterday was a
negotiating strategy for certain key countries.
But JD Vance, the U.S. vice president, summed it up this morning, speaking on "FOX and Friends," when he said, look, this is a big change. This is
meant to be a big change. This is Donald Trump rewiring the global trading network to suit the United States.
So whilst there may be some accommodations to -- for individual countries or individual companies, that would not satisfy his overarching goal. His
overarching goal is to bring production back to the United States, to reimagine, to reenliven the Midwest manufacturing capability. It's not
going to happen the way he wants but that's the goal.
And this is the weapon that he is using. I have to say, if you look historically from 1890 to 1910 to 1913 to 1922, if you look at the history
of tariffs, it -- or general across-the-board tariffs, it always ends badly. And I haven't yet seen an explanation as to -- a satisfactory
explanation as to why this time is going to be different.
MACFARLANE: Yes. It's been saying all along, Richard, one big, great economic experiment underway. No one better to break it down for us,
Richard. Thank you.
QUEST: Thank you.
MACFARLANE: All right. Well, let's break down how these tariffs are working.
When foreign goods are shipped to the United States, the companies buying those must pay these newly levied taxes to the government. Now those
businesses have to absorb that extra cost or they pass it on to consumers.
Now remember, many of those consumers carried Trump to the White House in the hopes that he would ease stifling inflation. Well, let's get more on
the domestic and global implications of this.
Chris Southworth is the secretary general for the International Chamber of Commerce in the United Kingdom. And Justin Wolfers is a professor of
economics at the Public Policy at the University of Michigan.
Welcome to you both.
Chris, I want to start with you. We are both here in the U.K. As we reflect on that 10 percent levy, I guess it's not as bad as, you know, it could
have been for the U.K.
But how are you preparing now for this tariff?
And what are your members telling you about how they are going to deal with this?
CHRIS SOUTHWORTH, SECRETARY-GENERAL, INTERNATIONAL CHAMBER OF COMMERCE U.K.: Well, all the tariffs are bad news, whether it's 10 percent or 50
percent. So, yes, we've got off lighter than others. But it's bad news for the economy. You know, last week we had the chancellor set out the spring
statement.
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Which is effectively a sort of rebalancing of the books, leaving us with 9 billion pounds of headroom. Well, that 9 billion pounds of headroom looks
extremely thin. And it's just not enough to be resilient in the face of this kind of volatility coming from the U.S.
So what we're saying to government -- and we published the day before the spring statement is a plan for growth with a focus on trade and trade
finance for, you know, big reform in the trade finance space, where the regulations are antiquated, out-of-date and holding us back.
And the same in terms of hitting the gas now and really accelerating the modernization and digitalization of the trading system, all of which will
de-risk the economy but also bring down cost and risk for business, which, in the face of tariffs, is even more important this week than it was last
week.
MACFARLANE: Yes. And I want to get your thoughts on the comments by prime minister Keir Starmer in just a moment.
But Justin, moving to you. I mean, we've been talking all of the last hour, really, about the implications for the U.S. not being what Donald Trump is
proposing.
And, you know, he's been saying all along that these tariffs are going to be a net positive for consumers and businesses in the long run, that U.S.
consumers only have to endure in a little bit of short-term pain for the long-term gain.
What's your assessment of that?
JUSTIN WOLFERS, PROFESSOR OF ECONOMICS, UNIVERSITY OF MICHIGAN: Well, it's not just my assessment. Of course, you could ask me. I think that this is
short-term pain and long-term pain.
But perhaps it's -- it would be more useful to look to financial markets, because, when people buy stock in a company, what they're doing is they're
buying a share of all the future profits of that company.
And what we've seen is that U.S. stocks have absolutely cratered in light of these tariffs. So that tells us that people, who are betting millions
and, in many cases, billions of dollars, taking long-term bets on companies, think that the long-term profitability of American corporations,
the very group these tariffs are meant to help.
That long-term profitability is going to be substantially lower. So markets are telling us it's long-term pain as well.
MACFARLANE: Chris, Keir Starmer said this morning that he was going to take the, quote, "calm approach to retaliation" but that the U.K.
government are going to start considering steps for retaliatory tariffs.
How would you like to see the U.K. respond in this moment?
SOUTHWORTH: Well, I think -- I think the prime minister is completely right. We need to be cool and calm. You've got to remember that the U.S. is
obviously an economic superpower. But it's only 13 percent of global trade in today's world.
So you know, this does not need to be a systemic crisis. This now depends really on the reaction of other governments. And the U.K. is playing an
important role here and just being measured and not overreacting or responding too quickly.
But what they did last time is probably a reflection of where they'll be consulting businesses now. They took very targeted measures, on specific
companies like Levi's or Harley-Davidson. Today, it may well be on tech companies or Tesla-specific products, specific companies and specific
sectors rather than blanket tariff approach.
And they'll want to do that consultation quite quickly with business and have that option up their sleeve should they need it. But at the moment,
they're taking the right approach: keep the dialogue going, keep exploring a trade deal.
Because, you know, none of this helps us deal with our priorities here in the U.K., which is falling living standards, rising costs and a flatlining
economy. Our priority is economic growth, 100 percent.
And we've got to do whatever it takes to drive that growth. What we don't want is to go head-to-head with the U.S. on a trade war, when actually what
we want to do is work with the U.S. on many of the priorities where we can help each other.
MACFARLANE: Justin, just sort of reflecting on what Chris was saying there about the U.K. attempting to keep those negotiations going, attempting to
carve a better path for the nation, I mean, Trump has said yesterday that there is to be no negotiations with trading partners.
Do you think liberation day is going to be the end of the story on that score?
Or do you expect we are going to see some flip-flopping?
I mean, this is the big question.
What comes next?
WOLFERS: Well, we've seen enough of Trump on tariffs, not just in the first term but already in the first couple of months, which is what he says
on Monday is very different to what he says on Tuesday. And everything might flip again by Wednesday.
In fact, we saw Canada and Mexico go from the biggest targets of Trump tariffs to being the smallest, all within a couple of weeks. So the idea
that yesterday was the last word in this story is absurd. It's actually really painful because Trump's whole agenda is trying to get companies to
locate in the United States.
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Now, of course, you'll only build a factory in the United States if you believe that you'll have the sorts of protections he's offering in the very
long run.
But that's not how this chaotic White House works. No one understands, no one knows what future tariffs are going to be and that makes it very hard
for anyone to do business, particularly with the United States right now.
MACFARLANE: Yes, predict the unpredictable. I guess that's all we can expect.
Justin, Chris, thank you both for joining us and giving us your perspective on today's events. Appreciate it.
Now when these reciprocal tariffs were first announced, economists were scratching their heads. Take Vietnam, for example, one of the hardest-hit
countries.
In what he called an act of kindness, Trump said he split his retaliatory tariff by about half, landing at 46 percent. But Vietnam doesn't have
upwards of a 90 percent tariff on U.S. imports.
So how did he get to that number?
Well, it was a simple formula. Let's try and break it down for you step by step.
This is per official U.S. data. Vietnam sold over $136 billion worth of goods to the United States in 2024. On the flip side of that, Vietnam
bought just $13.1 billion in American goods. So when you subtract those numbers, you land at a trade surplus, which is considerable. It comes to
$123.5 billion.
Well, that surplus number is around 90 percent of the total value of Vietnamese exports to the U.S. Now still following this, if you split that
by half, you've come to Trump's 46 percent tariff, which he considers an act of, quote, "kindness."
Well, that methodology was used for nearly all countries, punishing any nation that has a trade surplus with the United States, the largest economy
in the world.
OK, still to come, an international arrest warrant means Hungary has an obligation to arrest Israeli prime minister Benjamin Netanyahu. Instead, he
got a warm welcome in Budapest. The latest on that visit next.
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MACFARLANE: Israel's prime minister says his military is switching gears in Gaza, aiming to divide it up and seize large parts of the Strip. One
target Benjamin Netanyahu mentioned in particular, the Morag Corridor. Experts tell CNN, if the IDF seizes it, it could divide the cities of Khan
Yunis and Rafah in southern Gaza.
Meantime, Gaza's health ministry says at least 100 people were killed in the enclave in a space of 24 hours.
Hungary says it is pulling out of the International Criminal Court as the country hosts Israel's prime minister on a four-day visit. The trip is seen
as a direct challenge to the ICC. It issued a warrant for Benjamin Netanyahu's arrest last year on suspicions that he was responsible for war
crimes and crimes against humanity in Gaza.
Well, speaking alongside his Hungarian counterpart, Viktor Orban, a short time ago, Mr. Netanyahu said the court was corrupt.
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(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL: It's important to stand up to this corrupt organization that is equated a democracy, that is
challenged for its very existence by the most horrific terroristic powers on Earth.
But the ICC directs its actions against us fighting a just war with just means and, of course, not against our tormentors.
(END VIDEO CLIP)
(BEGIN VIDEOTAPE)
MACFARLANE: Well, Botond Feledy is a political analyst and CEO of Red Snow Consulting and Publishing. He joins me now live from Budapest.
Thank you for joining us. Now Hungary, as we know, is a founding member of the ICC and will now be the first European nation to pull out.
How damaging is this for the credibility of the ICC and its signatories?
BOTOND FELEDY, CEO, RED SNOW CONSULTING AND PUBLISHING: The international organizations has been attacked by the Trump administration and it seems
that the Hungarian government has been a partner in that.
The Hungarian government was also considering to pull out from the World Health Organization after the Trump administration indicated decisions on
that. Indeed, Hungary has been the outlier out of the 27 member states in the union.
So we are often talking about 26 plus one in Brussels, which means that Hungary has been trying to hinder several processes regarding the Ukrainian
support from -- to other international taxing rules. So this is not unusual pattern for Hungary. It's quite the contrary. Viktor Orban has been playing
the bad guy for so long.
MACFARLANE: When it comes to Benjamin Netanyahu's visit today, how important is this trip for him personally, this moment, for him to show
that he can still function as a prime minister, despite all the international and domestic attacks he's facing over his handling of the war
in Gaza?
FELEDY: Definitely, it is a significant victory that he can land in an E.U. member state and that country is pulling out from ICC.
On the other hand, the trip is unusually long for a head of a government, whose country is in war. He was supposed to come for four entire days. He
arrives early this morning and leaving on Sunday.
And besides the official meeting, it's the government, Viktor Orban; the other elements of the program are not known. So there is suspicion that
other negotiations might take place that we are not yet aware of or the public has not gained information yet, because otherwise it would be a very
long program.
Though it's also true that the chemistry between the couple of Viktor Orban, his wife, and Benjamin Netanyahu and his wife has been said to be
very warm for years. So they have usually private problems as well.
MACFARLANE: Yes. And talk to us a bit more about how that relationship has been mutually beneficial to both leaders.
In what ways?
FELEDY: Benjamin Netanyahu has gained a strong supporter in Hungary. We should not forget that Hungary was also receiving Ahmadinejad from Iran
last year. So supposedly there have been other negotiations related to the Middle East in Budapest.
At the same time for Viktor Orban, it has been useful for more than 10 years when he wanted to avoid accusations of antisemitism by befriending
the Israeli government of the time. And that relationship has developed also in weapons procurement.
The Hungarian PegasusGate was also involved, which means that Hungary was using Israeli spy softwares against its journalists and opposition
politicians. So there is -- there are several layers to this relationship that have been beneficial for both leaders.
MACFARLANE: You mentioned just now about the unusual length of this meeting. And I suppose it is speculation as to what else could be
happening.
But what is your read on other individuals, perhaps leaders or business leaders, that Netanyahu may be meeting while he's in the country?
FELEDY: Definitely, there should be other elements to the program. And we have seen this relationship evolving in several directions. Just two weeks
ago, Israel has hosted --and the far-right elements of Netanyahu's government, a conference on anti-Semitism, where even one of Orban leaders
(ph), Balkan friend, Milorad Dodik, took part, which is quite unusual, including other members of the European Parliament, from the radical Vox
party from Spain that is also part of Orban's group, Patriots for Europe.
So I think there are several potential meetings or discussions that he could take, though he is claiming that he would take Shabbat in Hungary and
take a rest. That's the official reply.
MACFARLANE: OK.
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We will wait to see how the ramifications of this withdrawal from the ICC play out. But for now, Botond Feledy, we appreciate your thoughts. Thank
you.
FELEDY: Thank you very much.
(END VIDEOTAPE)
Now still to come, America's top diplomat is in Brussels for some potentially awkward meetings. He's the first cabinet member to face NATO
allies after president Trump escalated a global trade war.
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MACFARLANE (voice-over): Welcome back to CONNECT THE WORLD with me. Christina Macfarlane. Here are your headlines.
U.S. stocks are sharply lower in early trading on Wall Street. The selloff follows president Trump's announcement Wednesday of tariffs on virtually
every country that trades with the United States.
Today, the president posted on the tariffs on his social media website, saying the operation is over and the patient lived.
Well, Hungary says it will withdraw from the International Criminal Court as prime minister Viktor Orban hosts his Israeli counterpart for a four-day
visit. The ICC issued a warrant for prime minister Benjamin Netanyahu's arrest last year on suspicions of war crimes and crimes against humanity
committed in Gaza.
U.S. secretary of state Marco Rubio is reassuring American allies the U.S. will remain part of NATO but he insists other members must increase their
military spending and capabilities. Rubio is meeting with other NATO foreign ministers at the organizations headquarters in Brussels.
And that is where CNN's Alex Marquardt is following the story for us from Brussels.
Pretty awkward timing for Marco Rubio, this.
What more can you tell us about the meetings and discussions that have been having in the last few years -- for the last, last few hours?
ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Yes. Christina, potentially several very awkward moments for secretary Rubio, who left
straight from that tariff ceremony in Washington yesterday and flew overnight to come here to Brussels.
So without question, the subject of tariffs is coming up. So many of NATO's members are part of the European Union, which president Trump said
yesterday is ripping off the United States and that it's pathetic. So quite aggressive terms that now secretary Rubio is essentially going to have to
defend.
There was already a long list of agenda items, from NATO unity to the war in Ukraine, defense spending, that the defense, the foreign ministers were
going to be discussing here.
And now the tariffs on top of that, even though it is not a main focus of this foreign ministers' meeting, I just spoke with the Finnish foreign
minister just moments ago, who said, yes, of course, the tariffs have come up.
It has not been divisive, she said. And they have tried to approach it in a constructive way.
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Here's a little bit more of what she told me.
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ELINA VALTONEN, MINISTER FOR FOREIGN AFFAIRS, FINLAND: Tariffs aren't the best news but I hope that this is an opening to a fruitful negotiation,
especially between friends and allies, where -- whereby we could reach a situation in which we effectively let go of the existing trade barriers
between us, because that's what we need.
We need a reinforcement. Also in economic terms of the alliance for the free world. And, yes, we have been talking about that a little bit also
today. But the mood has been very, very constructive. And I think also very positive.
(END VIDEO CLIP)
MARQUARDT: Christina, a bit more of a silver lining from the Finnish foreign minister, saying it has brought all of us together, meaning all of
the non-American countries, and given them something to focus on.
She also praised the message from secretary Rubio to the other NATO allies about developing more of a deterrence and defense capability, essentially
building up their own defense resources.
We have heard specifically from secretary Rubio, who says that he wants to leave this NATO foreign ministers' meeting essentially with a commitment,
with a pathway for all 30-plus members of NATO to be on a path to getting to 5 percent of GDP in defense spending. That's up from 2 percent, which
has been the norm for the past few decades.
That is something that secretary -- or that president Trump has really been adamant about.
One more thing that could really make this awkward is the issue of Greenland. And essentially now you have the most powerful NATO member, in
the United States, trying to annex the territory of another NATO ally in Denmark.
Just about an hour ago, we saw the Danish foreign minister sit down with secretary Rubio. They ignored shouted questions about Greenland. Everything
on the surface appeared to be OK. But, of course, that is a very controversial subject as well at this NATO meeting. Christina.
MACFARLANE: Yes, so many awkward fronts for the United States right now. Alex Marquardt there, live from Brussels, appreciate it. Alex. Thank you.
Now new allegations this morning by the attorneys for the Turkish grad student recently taken into custody by immigration agents in Boston.
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MACFARLANE (voice-over): This video shows the Tufts University student being hauled away last month by plainclothes officers with their faces
covered. Her lawyers accuse immigration authorities of employing secretive measures, moving her across state lines several times to prevent her from
getting access to her attorney.
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MACFARLANE: CNN's Gloria Pazmino has been following all of this for us.
What more are you learning, Gloria?
GLORIA PAZMINO, CNN CORRESPONDENT: Yes. Christina, attorneys for Ms. Ozturk filed documents with the court in Boston late last night, saying
that, shortly after that arrest, which you saw on that video there, she was, put into the back of an SUV, hauled away and then moved across
multiple state lines.
They first took her to a facility right outside of Boston, then to another facility in New Hampshire and then to another facility in Vermont. All of
this happened in the span of 24 hours before they finally transferred her to Louisiana, where she remains in custody today.
During all that time, her attorneys were unable to contact her. Now the attorneys are saying that this is not an accident, that this is not a
question of resources or not having a place to put detainees.
They say that the government is doing this on purpose to keep international students who have been detained from having access to their attorneys and
resources in their home districts.
We've seen similar patterns, not just with the Tufts University Boston student but also with Mahmoud Khalil here in New York. He, too, was moved
around different jurisdictions, as well as the Georgetown University fellow. He was also transferred multiple times before eventually ending up
in Louisiana.
Now attorneys I've been speaking to tell me that this is clear evidence of what we know here as venue shopping. The Trump administration hoping that a
friendlier judge down south in Louisiana will side with them on the case.
Now in the meantime, we are expecting this to play out during a court hearing later this afternoon in Boston. But Tufts University also filed a
declaration with the court late last night supporting Ms. Ozturk.
This is the first time we are seeing an American university go out in public and in front of a court to say that they are standing behind their
student. They said that they have no information that would support the fact that she has been arrested.
The university president wrote in his declaration, quote, "The university has heard from students, faculty and staff, who are foregoing opportunities
to speak at international conference and avoiding or postponing international travel.
[10:35:03]
"In the worst cases, many report being fearful of leaving their homes, even to attend and teach classes on campus."
So Christina, what the university president is saying there is that the arrest of Rumeysa Ozturk has not only been troubling for the university,
where she is currently enrolled, but that the international community on campus is essentially paralyzed since the arrest.
Because they are afraid that they might be next as a potential target for immigration enforcement here. So we'll see what happens during that court
hearing today. Her attorneys are asking for her to be brought back to Boston and for her to be released. The government is asking the judge to
transfer the case to Louisiana.
MACFARLANE: Very interesting to see her university taking a stand on her behalf there. Gloria Pazmino, appreciate your reporting. Thank you.
All right. Still to come, we sit down with an AI company doing things a little differently. Up next, how its founder is aiming for a more human-
centered AI future.
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MACFARLANE: Here on CONNECT THE WORLD, we cover technology almost daily because there's always an advancement making the headlines. And that's why
CNN has launched a new series to explore how technology is shaping our world today and preparing us for a better tomorrow.
In our first episode of "Intelligent Future," Becky Anderson sits down with an inventor of Analog AI, founder Alex Kipman, to explore how real-time,
sensor-driven tech could transform the way we live.
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BECKY ANDERSON, CNN HOST (voice-over): We often ask about what keeps people awake at night. You know, it's the classic question, isn't it?
In journalism, what keeps you awake at night?
What are you worried about?
So what gets you up in the morning, Alex?
Technologist, inventor; as I was doing my research for this, I thought, actually, who is Alex Kipman?
So who is Alex Kipman?
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ALEX KIPMAN, CEO AND FOUNDER, ANALOG AI (voice-over): I'm a technologist, an inventor who's been in love with technology since he was a child. I
never knew people would pay me for it but I knew it was what I wanted to do for the rest of my life.
I've been very fortunate and extremely grateful. People have paid me for it. I have spent my entire adult life dedicating myself to this art form. I
spent, you know, 25 or so years on the West Coast, most of them working at Microsoft, where, about seven years into that career, I started to some
extent the same journey.
I mean, today, which is a journey of real-time sensor AI or physical AI for the purposes of making technology disappear.
[10:40:00]
And make the future be about humans and, you know, creating the future human platform.
ANDERSON: Well, let's talk about that because I want you just to explain what Analog AI is, what the vision is and how you are implementing that
vision. You've moved here to Abu Dhabi.
So in the first instance, why set up Analog AI here?
And what's it all about?
KIPMAN: So Analog is an AI company. But unlike other AI companies that deal primarily with, you know, pre-trained digital data, whose purpose is
usually to get to some insight on the internet.
Analog is an AI company that deals with real-time sensor data, whose purpose is to understand the physical essence of the, as the name of the
company suggests, analog world.
What does it mean to understand the physical essence of our analog world?
It means that it's a quest to understand four things: people, places, things and creatures. And if you think about it with those simple four
constructs, you can explain the entire world that you and I live in.
ANDERSON: So what does that mean in real terms?
What does that mean as far as implementation is concerned?
KIPMAN: So we have three different products we're creating. Analog is a product company. And one of our products is around putting sensors on
environments. I mean, taking advantage of sensors that exist in our environment.
What does that mean?
That means smart city fabric. That means digital twins. That means IoT. Think about a living, breathing city that now can have a digital twin of
itself, where you can start seeing real-time information for everything that's going on.
Now imagine that command and control center existing with all the different entities of the government being able to operate in real time on a living,
breathing city. That's what we get to do here.
Imagine, you know, when the sensors aren't on the environment. Imagine when the sensors are on the moving objects, on the things. That's where you get
self-driving cars. That's where you get drones. That's where you get robots.
ANDERSON: The tagline on your company is Analog AI: Humanity Amplified. And you say, this is about putting the human at the center of the
technology story.
How unique is that?
What is it that you are doing which is very new and very, very different?
KIPMAN: Look, from our perspective, you know, the mission of the company or the purpose of the company is to create a future without limits.
You know, we are proud sponsors, for example, of Team Emirates and Team ADQ cycling, where, for the last year, we've been using sensors before and
after the races.
To take all of this objective data from sensors, couple it with subjective data from the athletes, from the doctors, to essentially run through it and
create an AI coach that they're using.
As you know, they're the elite teams in cycling in the world today, to become, you know, even better than they already were.
ANDERSON: And how is that working?
KIPMAN: It's incredible. It's amazing. I mean, anytime you get the opportunity to work with people that are absolutely top of their game, it's
inspiring, right?
You know, both team members and Team ADQ are a set of inspiring and inspired individuals. And when you take that level of insight in sports,
with our expertise -- sensors, real-time sensor data with AI -- and you put the two together, magic happens.
ANDERSON: So let me ask you this. Governance, privacy, ethics, three huge issues that we think people like you are thinking a lot about.
First question is, are you?
(LAUGHTER)
ANDERSON: Please.
KIPMAN: Oh, 100 percent.
ANDERSON: OK.
KIPMAN: We live it and we breathe it or, otherwise, this all breaks down, right?
ANDERSON: But how much work is done on those three very pressing issues, which are things that, when I talk about AI and new technology,
technological trends, with my friends, these issues come up again and again and again.
And there doesn't seem to be a complete confidence that people like you are thinking about this. So tell me. Convince me. I'm not suggesting that
you're not. I'm just saying.
KIPMAN: By all means, I think. Look, I think this is a very relevant, you know, question and conversation and one that, as a industry, we need to
continue to push, you know, trust, which is I think what you're getting at.
It's something that you earn in drops and you lose in buckets. And we, collectively, as an industry, get to earn a drop at a time.
[10:45:00]
When all it takes is any one of us to lose the bucket for the rest of us. Right. So security, privacy, ethics, they're not something that you think
at a company level should differentiate you. It's something that you should take as bare minimum for us as an industry to have permission to operate.
ANDERSON: You moved here 18 months ago. You brought the family. You got a 14-year old who is at school here and you tell me she's into robotics.
Why does that not surprise me in the least?
What does Abu Dhabi look like to your daughter 15 years from now?
KIPMAN: That's a great question. I don't know.
I hope she would say a city that feels like home. I hope that she would say a city from the future. And I hope she's as excited as I am to see us, you
know, build together. I go back to -- can you -- you know, if you're thinking about what will Abu Dhabi look like 15 years from now?
I look as the past as the best indicator of future. Imagine what Abu Dhabi was 15 years ago, which is knowable. And look at the amount of progress
that happened since and prorate that forward, because it's not slowing down. It's speeding up.
So I hope ultimately she finds it like an exciting home that she wants to move back into after wherever she goes for college.
ANDERSON: Give me three prospects for our Intelligent Future, three ideas.
KIPMAN: Robots, walking around our cities, giving us better hospitality, being our tour guides in any language, taking us around, helping us find
places, being helpful if they need to be helpful, at getting us the help that we need.
That would be one.
I think better, more connected cities in terms of, again, a living, breathing city, that allows for municipalities, the private sector, the
federal government to come better together with knowledge, to be able to work together, to give better services to their people.
And then third, I think better maintenance for the humans in the process, also known as moving away from -- call it -- health care, into what the
world is moving into now, which is preventive care. But really talking about moving into longevity.
I think the more we can be aided by sensors, like this ring, but more of them that observe our daily lives, the more we can start adjusting with AI
to essentially live longer lives with longer spans of that life, of full consciousness.
ANDERSON: Good stuff. Thank you.
KIPMAN: Thank you.
ANDERSON: I enjoy speaking to you.
KIPMAN: Thank you.
(END VIDEOTAPE)
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[10:50:00]
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MACFARLANE: Oh, we are back to our breaking news this hour. Donald Trump's global trade war is sending stock markets plunging. The three main indices
on Wall Street are all down between 3 percent to 5 percent. You can see there, maybe just over 5 percent. The tech-heavy Nasdaq seeing the biggest
selloff right now at 5.59.
And oil is apparently tanking. The U.S. benchmark, WTI, down around 7 percent and Brent crude is trading at just under that. OPEC+ surprised
investors today with key members announcing they will sharply accelerate production increases in May. That move really highlighting the fear around
the economic fallout of all of this.
Well, Russia was notably left out of president Donald Trump's latest stunning spree of tariffs that targets more than 180 nations. The U.S.
Treasury Secretary explained why.
(BEGIN VIDEO CLIP)
SCOTT BESSENT, U.S. TREASURY SECRETARY: Russia and Belarus we don't trade with right. Like it's they're sanctioned.
(END VIDEO CLIP)
MACFARLANE: Well, worth noting, too, Syria and Iran, who also both faced U.S. sanctions, are among the countries hit with these new tariffs.
Meanwhile others have been spared from this round, including two of America's biggest trading partners, Canada and Mexico, though both
countries are already subject to a 25 percent levy that was imposed weeks ago. And that has sparked a growing surge of anti-American sentiment.
(BEGIN VIDEO CLIP)
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MACFARLANE: That is how Canadians reacted when they heard the U.S. National Anthem played on their soil. Those boos echoing through
Vancouver's Rogers hockey arena earlier, ahead of the Canucks' Kraken game. CNN's Paula Newton is live for us in Toronto. Paula.
(END VIDEO CLIP)
MACFARLANE: No surprise, really to see the reaction there, I think at the hockey game, because, despite Canada being left out of the liberation day
tariffs, they have still been hit. And they still have new tariffs coming into effect today in the form of those auto tariffs.
PAULA NEWTON, CNN ANCHOR AND CORRESPONDENT: Yes, absolutely. I mean, many are saying that Mexico and Canada have had a reprieve here. It doesn't feel
like it to two countries that negotiated a free trade deal with this president in 2020.
What you heard there in the hockey rink, though, that has happened dozens of times for weeks right across Canada. And the reason has to do with the
rhetoric coming from the president himself, talking about the 51st state.
I think this country, Mexico, will tell you as well, they were willing to secure the border against fentanyl. That is something that these tariffs
are predicated on. But what the White House is talking is something wholly different here.
They really want to pivot. They want a transformative trading relationship. And they have done so even with two countries, Mexico and Canada, that they
do need in their trading relationship.
What is going to happen now within the next hour?
We do expect prime minister Mark Carney to make some kind of an announcement about what they're thinking. If there will be retaliatory
tariffs, they've already imposed some but tens of billions more are still on the table.
What will be interesting here is to see if they actually go through with those retaliatory tariffs, given the fact that they have been spared a bit.
I mean, I'm not sure anyone's following the Treasury Secretary's advice to kind of calm down and hold your fire but there are certainly people on
pause.
The other people on pause here are those auto manufacturers. Stellantis just one announcing a two-week stall in their production here in Canada.
MACFARLANE: Yes. And Paula, international leaders are going to be judged on their response, not just economically but politically, too. And that's
particularly acute for Mark Carney right now, isn't it, in the midst of an election campaign.
NEWTON: You are 100 percent correct. He has a needle to thread here. Having said that, as you well know, he was the governor of the Bank of
England, the governor of the Bank of Canada.
Canadians, right now, if you look at the polls, are thinking that they want someone that is an incredibly steady pair of hands. He spoke to Donald
Trump last week. Apparently, both sides say it was a productive call. And then we have this reprieve.
I think, in terms of Canada's reaction, he has also moderated his stand a little bit to say, look, we can fight back but only so much. The real
economy is really biting here. When you think about the size of the U.S. economy and how much it has pivoted in the last three decades to the United
States, there's only so much Canada can do.
But I do expect more globetrotting from Mark Carney if he does win the election on April 28th, looking for a way to diversify, especially in the
U.K. and Europe.
MACFARLANE: All right. We will wait and look ahead to that election later in the month. Paula, for now, thank you. Appreciate it.
Now no economy and no permanent human population at all apparently isn't enough to get taken off president Trump's tariff list. The latest round of
levies has some unlikely targets, including the uninhabited McDonald Islands, an Australian territory in the southern Indian Ocean, and the
Heard Island.
[10:55:06]
Yes, never heard of either of them. Described by CIA World Factbook as 80 percent ice-covered and bleak. And as you can see, certainly not a world
superpower, to put it mildly, with no people. Just a couple of fluffy- looking, friendly penguins there, just minding their own business.
Oh, and a couple of seals as well.
(LAUGHTER)
MACFARLANE: We will wait to see what reaction they are taking in the retaliatory world we're in.
And that is it for CONNECT THE WORLD this hour. Keep it with CNN. "ONE WORLD" is up after this quick break.
END
