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Early Start with Rahel Solomon

Trump To Announce Sweeping Reciprocal Tariffs Today; CNN: Susan Crawford Wins Wisconsin Supreme Court Race; Israel Expanding Military Operation In Gaza. Aired 5-5:30a ET

Aired April 02, 2025 - 05:00   ET

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

[05:00:21]

RAHEL SOLOMON, CNN ANCHOR: Good morning and welcome to our viewers, joining us from the U.S. and all around the world. I'm Rahel Solomon.

It is Wednesday, April 2nd, President Trump's so-called "Liberation Day", 5:00 a.m. here in New York.

And straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The president is focused on re-shifting our global economy.

REP. MIKE JOHNSON (R-LA), SPEAKER OF THE HOUSE: You have to trust the president's instincts on the economy, okay?

SEN. RON JOHNSON (R-WI): Terrorists will create pain.

REP. DON BACON (R-NE): The trade war doesn't help anybody.

SUSAN CRAWFORD, WISCONSIN SUPREME COURT ELECTION WINNER: Wisconsin, we did it. Justice does not have a price. Our courts are not for sale.

REP.-ELECT RANDY FINE (R-FL): Mr. President, this win is yours. I believe that God turned Donald Trump's head in Butler, Pennsylvania, so he could save the world.

VAL KILMER AS BATMAN: It's the car, right? Chicks love the car.

I'm shy in this one.

UNIDENTIFIED FEMALE: He'll be remembered as a consummate artist. "Ice Man", it's one of the most iconic characters in movie pop culture.

(END VIDEO CLIP)

SOLOMON: And we begin in Washington, where President Trump is set to announce sweeping reciprocal tariffs later today. The White House says they will go into effect immediately. We are also following the results from the first elections of President Trump's second term. In battleground Wisconsin, CNN projecting that Democrat-backed Judge Susan Crawford will win a seat on the state Supreme Court. Elon Musk spent more than $20 million to support her opponent.

CNN also projecting that Republican Jimmy Patronis will win the House seat that once belonged to Matt Gaetz and the GOP's Randy Fine will win the House seat that was vacated when Mike Waltz became the national security advisor.

And President Trump plans to reveal the new tariffs at an event in the Rose Garden at 4:00 p.m. today. Now, this is expected to be his most aggressive round of tariffs yet, and a major escalation of his trade war. Americas trading partners, businesses and the American public now bracing for the impact.

And economists warn that prices of goods could quickly skyrocket at a time when the stock market is already off to its worst start in three years. The White House, acknowledging that Americans have legitimate concerns about tariffs but is asking for patience for the president's economic plan to work.

Take a listen.

(BEGIN VIDEO CLIP)

LEAVITT: The president will be addressing the decades of unfair trade practices that have ripped our country off and American workers off. It has hollowed out our middle class. It has destroyed our heartland. And the president is focused on reshifting our global economy to ensure that America is, once again the manufacturing superpower of the world.

(END VIDEO CLIP)

SOLOMON: Republican House Speaker Mike Johnson, also defending the expected tariffs, though he accepted that, though he also accepted that Americans could suffer, at first.

(BEGIN VIDEO CLIP)

JOHNSON: You have to trust the president's instincts on the economy, okay? And why? You don't -- this isn't blind faith. Remember what he accomplished in the first administration? Before COVID, we had the greatest economy in the history of the world, not the U.S. or the whole world.

So, look, we'll see what happens. I think it's going to go forward. And it may be rocky in the beginning, but I think that this will make sense for Americans, and it will help all Americans.

(END VIDEO CLIP)

SOLOMON: All right. Let's go to CNN's Marc Stewart, who joins us live from Beijing.

Marc, good evening to you. Good morning here. These -- these announcements, these pending announcements could impact

a lot of countries in your part of the world. How are leaders there responding?

MARC STEWART, CNN CORRESPONDENT: Indeed, Rahel. Good morning.

This is truly an extraordinary moment in the sense that virtually every continent could see tariffs of some sort as part of this Liberation Day plan. I was hearing from one source overnight who said that this very well could mark the start. He thinks this could mark the start of a global trade war.

And here in Asia, the stakes are very high. Obviously, we have imports and exports with China and the United States. And then if we look nearby to -- to South Korea and to Japan, we have the auto industry, which certainly depends on American consumers to thrive.

So, as world leaders hold their breath as to what is going to happen next, we are getting a little bit more indication as to what will happen specifically here in China. In the past, even when the talk just started about additional tariffs, we heard Chinese officials use very much diplomatic speak calling for win-win cooperation and mutual agreement. But really, in the last few days, we have seen a shift to much more pointed language, talking about fighting back.

Let me share with you some remarks we heard in the last 24 hours from the Chinese foreign minister, Wang Yi, talking to Russian media, a very forceful statement saying that America first should not be American bullying and should not build its own interests on the basis of damaging the legitimate rights and interests of other countries.

[05:05:16]

So, some very strong wording and again, a shift from the past. As far as what China will do, being the world's second largest economy, it certainly could throw more tariffs back at the United States and make products that Americans depend on and enjoy every day more expensive, things like clothing, things like electronics, things like furniture and home furnishings. Those could all cost more.

But China has a very big toolbox. In fact, it has a lot of influence and control of global supply chains, and it could make things very hard to get for the American market. I'm talking about things such as rare minerals such as pharmaceuticals. China exerts a lot of control about how these products flow. Thats one way it could fight back.

In addition, it could also just make life very difficult for American companies that do business here in China. American companies want to do business in this part of the world. There are more than a billion people here. It's a very lucrative market.

But as we have seen in the past, China has taken different measures to make things difficult for companies like google and for the parent company of Tommy Hilfiger and Calvin Klein.

Rahel, there certainly a hope that what's happening today will perhaps trigger some kind of broader trade agreement between China and the United States, as well as other nations around the world. The real question is who will make the first move?

In the case of China, at least, it doesn't want to be told what to do by the United States. So, it's going to have to balance the hardships that perhaps these tariffs will face with its own national pride within China, as well as in the rest of the world, Rahel.

SOLOMON: Its own national pride to your point, Marc, and its own sort of lofty economic goals that have just sort of been outlined for, for China, certainly a lot of considerations and factors to consider.

Marc Stewart in Beijing, thank you. Good to see you.

Economists are warning that aggressive tariffs on U.S. trading partners could quickly drive up consumer prices.

Let's take a look at where U.S. futures stand right now. The major averages are slightly lower between 2/10 of a percent. And let's call it a third of a percent.

Taking a look now back to the election results. We'll keep a close eye on futures. But back to those election results from last night. State judicial races usually don't make national or international news headlines. But Wisconsin, well, it's a battleground that helps determine who wins the presidency and a Supreme Court also gets the final say on election disputes and other contentious issues.

Justice-elect Susan Crawford will maintain the high courts liberal majority now, after her decisive win over conservative judge backed by the Trump administration.

Former President Barack Obama celebrating Crawford's victory, calling her a judge who believes in the rule of law and protecting our freedoms.

(BEGIN VIDEO CLIP)

CRAWFORD: And to the people of Wisconsin, thank you. Thank you for trusting me to serve you on the Wisconsin Supreme Court. This campaign has been an incredible, life-altering experience in so many ways. And I'm so grateful to have earned the trust and support of voters across this great state.

(END VIDEO CLIP)

SOLOMON: All right. Let's go to CNN's Arlette Saenz, who has this report from Madison, Wisconsin.

(BEGIN VIDEOTAPE)

ARLETTE SAENZ, CNN CORRESPONDENT: Liberal judge Susan Crawford thanks supporters for helping elect her to the Wisconsin Supreme Court, saying that Wisconsin voters sent a real message about the influence of big money in her campaign. Now, Crawford, in her victory speech, did not reference Elon Musk by

name, but she did reference working to defeat the richest man in the world. Musk had poured more than $20 million of his own personal fortune into the state to try to boost the conservative candidate, Brad Schimel.

Crawford really put Musk's involvement at the center of the strategy, and she said the election results showed where Wisconsin voters stood on that issue. Take a listen.

CRAWFORD: Today, Wisconsinites fended off an unprecedented attack on our democracy.

CROWD: Yeah.

CRAWFORD: That's right. Our fair elections and our Supreme Court and Wisconsin stood up and said loudly that justice does not have a price. Our courts are not for sale.

SAENZ: Crawford's victory will now ensure that liberals maintain the majority on Wisconsin Supreme Court. There are a number of hot button issues that could come before the court in the coming years, ranging from abortion rights to congressional maps.

Now, this was officially a nonpartisan race, but it attracted a lot of outside political attention from both national parties, as President Trump had endorsed the conservative candidate Brad Schimel, and Elon Musk also went big on his campaign.

[05:10:13]

Now, Crawford and her Democratic allies really tried to turn this race into a referendum of Musk betting that those voters who are frustrated with the DOGE efforts and his big spending in the race, would be motivated to turn out, and this marked the first real major electoral test in a battleground state of President Trump's second term.

Arlette Saenz, CNN, Madison, Wisconsin.

(END VIDEOTAPE)

SOLOMON: Well, the man accused of killing a health care CEO has not yet been indicted on federal charges. But the U.S. Justice Department has already decided what punishment Luigi Mangione should face if he is convicted. Those details ahead.

And later, history, was made on the senate floor by New Jersey's Cory Booker. We'll tell you why he spent more than an entire day speaking in protest.

Plus, remembering Val Kilmer. We'll have the latest on his passing, as well as a look back at his illustrious career. We'll be right back.

(COMMERCIAL BREAK)

[05:15:37] SOLOMON: Welcome back.

And there were key wins for both Republicans and Democrats in the first major state races of President Trump's second term.

In Wisconsin, CNN projects that the Democratic backed candidate, Susan Crawford, will win the state Supreme Court race there, maintaining the liberal majority on the court.

And in Florida, CNN projecting that Republican Jimmy Patronis will win the state's first congressional district, filling the House seat vacated by Matt Gaetz. And Randy Fine is projected to win in Florida's sixth district, filling the seat left by national security adviser Mike Waltz. Both wins giving Republicans a slight boost to their narrow House majority.

Joining me now to discuss is Katie Frost, a Republican strategist and former aide to the Ted Cruz for president campaign, and Taryn Rosenkranz, a Democratic strategist and CEO of New Blue Interactive.

Great to see you again, ladies. Appreciate you sticking around to be with us this hour.

Taryn, let me start with you. All of that money spent in races that really just ended in the status quo in Wisconsin and Florida, both keeping the seats, you know, that that they had been running for, that had existed. What's your big takeaway and where do you see momentum building for Democrats?

TARYN ROSENKRANZ, DEMOCRATIC STRATEGIST: Yeah, absolutely. So, I think lets start with Wisconsin. So, in Wisconsin, we had just seen in the presidential that it had been flipped. So, this for us, if you look at it, was important to see that it went back. And so, I don't think that was the status quo there.

We wanted to make sure that, you know, voters were mobilized. I think that it was important to see that it was a rejection of Musk and his money coming in. There was $20 million spent, as you said, there's lots and lots of money coming in and outsiders coming in. And there was a rejection of that, which I think really goes to show that while Wisconsin can go back and forth and has become quite the battleground state, we did see voters going back to their roots there and keeping that status quo for the court.

And I think, you know, in Florida, they may have done the same thing, but in that ruby red district, we really shaved off quite a significant amount of voters. With them, I think they outperformed -- Democrats outperformed, you know, over ten percentage points from what happened in November.

And I think that kind of movement is significant. While it didn't result in a win, you wouldn't really expect to in a ruby red district like that. They definitely made strides that I think really speak volumes.

SOLOMON: Katie, what about you? I mean, the GOP retains those open seats in Florida, helps build its slim majority in the House. But despite Trump's support, despite Elon Musk's money, it wasn't enough, at least in Wisconsin, to flip the Wisconsin Supreme Court seat.

What's the message you're taking away from last night for -- for Republicans moving forward?

KATIE FROST, REPUBLICAN STRATEGIST: You know, we had some good wins in Florida, and we also had a significant win in Wisconsin. Everyone's focusing on this judicial race, but we also had the ballot initiative on voter ID. Republicans strongly backed that, and that had the widest margin of anything that was on the ballot in Wisconsin.

So, a Republican issue did incredibly well. The Republican backed candidate didn't fare as well. But you know what? I've worked judicial races before. Getting folks interested in those feels like pulling teeth sometimes. It's very difficult to get people to turn out for a judicial race.

But I do remember something that former RNC Chair Reince Priebus said many years ago. He said Republicans focus on personalities and Democrats focus on process. The Democrats are very focused on the process of knowing these things are going to go through the courts in Wisconsin, and that's why they made that race such a priority.

So, we joked about earlier, you know, the more things happen, the more they stay the same. Not really a huge change anyway in either of these races, but I know the Democrats they're going to talk about, oh, look, we gained some percentage points in these Republican districts. Yes, they did, but that's because were looking for a silver lining here for the Democratic Party after a very bad November election cycle.

So, I think we're in a good position for sure. And I'm looking forward to what's going to happen for the next year and a half.

SOLOMON: Yeah. I mean, Taryn, do you think its a fair point to say we might be making too much of these -- these results, or at least Wisconsin and that I mean, special elections in general. The turnout that you see there aren't necessarily the most reflective of what you might see in a presidential race, and maybe not even the most reflective of what you might see in a midterm.

ROSENKRANZ: Yeah, I think that is certainly a fair point and something we should look at. I think probably what would be more of a bellwether are sort of these town halls that we're seeing where people are yelling at their members of Congress about, you know, we're having veterans who are so upset over all of these cuts and what's happening to them.

[05:20:06]

And I think that's where we're seeing that sentiment. I think the word we used earlier in the show was rage, right? Theres just a lot of anger and upset, and there's feelings from, I think, people of both parties who are feeling like I'm just being hurt by these policies. This is a lot of chaos. And I think we're seeing that momentum of that. And that's why you're

shaving off some of these voters in a ruby red district. So that's what I would be more concerned about, whether its percentage points or mobilization or money or any of those things. Those are tactics and those are politics at its best.

But I think what I would be more concerned about as a Republican strategist, if I was in those shoes would be sort of this feeling and overall sentiment that seems to be changing where folks are like, I did vote about the economy and you are not helping. If I'm looking at the cost of groceries instead of them going down, I'm worried they're going up. And that's not the direction I voted for.

SOLOMON: Yeah, I mean, perfect segue, Katie. I mean, in the last hour you said that, you know, this announcement from President Trump at 4:00 p.m. on these tariffs that you expect him to talk about the long- term benefits of this policy. But how risky is that when the big concern for most Americans, fresh off an election is still prices on an issue that he ran on?

FROST : We know this is the time when you swing for the fences, right? You're early in your second term. His popularity is higher than it's ever been. And also, Rasmussen is showing for the first time in over 20 years, more Americans believe were heading in the right direction than the wrong direction. That's huge.

So, this is the time for President Trump to really go for those issues that he ran on. And like I said, this is when he is going to swing for the fences.

I think we're going to see a good midterm for the Republicans. Obviously, we've got a long way to go, but I do believe things are going well for them because yes, we see those town halls. But listen, give me -- give me a couple thousand dollars and a bus and I can show you a lot of people at a town hall, too, who are very upset. It's not the hardest thing to astroturf, and we've seen that done time and time again.

What I would be concerned about if I was a Democrat is they appear to be a party without a clear message and without a clear messenger. And a lot of times we've talked about there's money in races. Yes, its a tactic, but there was a huge fundraising advantage for the Democrats in Florida. They still lost a lot of money was poured into Wisconsin, and the Republican backed candidate lost.

So, will the money actually play out with this fundraising advantage that we always talk about? Who knows? But if I was a Democrat, I would be concerned about what is our message going into the midterms? How do we look at the American people and say, you may be frustrated with this, but we're better? What is the alternative and who is the person to deliver that message? Thats what I'm looking forward to seeing shape up over the next year and a half.

SOLOMON: Taryn, your response to that? Are the Democrats even now still a party without a message? Is it enough to -- to run on being anti-Trump or anti-Elon Musk or anti-tariffs? Or do they need an issue? And who is the right messenger? Who is the

messenger for the party right now?

ROSENKRANZ: Well, I think the good news is, is that we don't have to have a clear messenger for the White House for four years from now. You know, we don't have to have this clear front runner yet. And I think those who do stand for something and those who are running for something, and I -- and I do agree with you 100 percent. I think that the most successful candidates that we saw in 2024 were those who were running for something, and not just an anti-Trump sentiment.

And I believe, you know, all the candidates that I work for, that is something that they've been talking about over and over again and who talked about and won on election night in November. So I feel very confident about the fact that that many of our wonderful candidates across the country are running on messages of what they stand for and what they believe in, and making sure were standing to our values, sticking to the Constitution and making sure that were doing things that are going to help the American people, not hurt the American people. And I think that that's what they're focused on.

Is there a clear leader? Is there going to be someone who's going to emerge? We have to see. But I do think that people were inspired yesterday by Cory Booker's filibuster in the Senate. I think, you know, I'm not saying he's emerging as the leader, but I am saying that there are folks who are standing up who are talking about what they believe in.

I don't think that was an anti-Trump message. I think that that was something about what we believe in and what we need to do, and speaking the testimony of the people. And I think it was really powerful, and I can't believe how many people came up who aren't interested in politics and were talking about it yesterday.

So, I think it's exciting to see, and I think you're going to see more people emerge like that who are coming out and speaking out and talking about what they believe.

SOLOMON: Senator Cory Booker is a -- is an interesting one, especially since his name has sort of been out there in the universe of possible contenders before. Watch this space.

Katie Frost, Taryn Rosenkranz, great to see you both. Thank you.

FROST: Thank you.

SOLOMON: All right. Still ahead, Israel announces a major expansion of its military operations in Gaza. We'll bring you the details of the plan and what it means for Palestinians in the enclave.

[05:25:05]

Plus, tributes are starting to pour in for the late Val Kilmer. How Hollywood is remembering the star this morning.

We'll be right back. (COMMERCIAL BREAK)

SOLOMON: Welcome back.

And we are following a developing story out of the Middle East, where Israel's defense minister has announced a major expansion of the military's operation in Gaza. It would involve the seizure of large areas of land that would be, quote, incorporated into Israels security zones. The operation would also include, again, quoting here, the large-scale evacuation of Gaza's population from combat zones.

Let's get to CNN's Salma Abdelaziz, who joins us live this morning from London.

Salma, talk to us about what more you know about these operations? And were they expected?