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Early Start with Rahel Solomon

New Trump Tariffs Threaten to Escalate Global Trade War; Trump Administration Admits Mistakenly Deporting Maryland Father; NATO Foreign Ministers Gather for Meeting in Brussels; Fallout from Trump Administration's Dismantling of USAID; Hungary Announces Withdrawal From International Criminal Court. Aired 4:30-5a ET

Aired April 03, 2025 - 04:30   ET

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

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RAHEL SOLOMON, CNN ANCHOR: TikTok is running down the clock with no apparent solution to avoid a ban in the U.S. Their parent company has until this Saturday to sell the app over national security concerns regarding its Chinese ownership. Now, President Trump has previously extended the January deadline and has said that he might extend it again if no deal is in place.

Tesla sales plunging 13 percent in the first quarter of this year.

It's the largest drop in deliveries in the company's history. The carmaker says that it sold 50,000 fewer vehicles in Q1 than in the same period last year. Comes amid growing backlash against Tesla CEO Elon Musk and increased competition in the EV space.

The Senate expected to move towards a vote on a budget blueprint unveiled by the Republican leadership, it's the first step in a month's long process to pass a spending bill and likely to be a tough sell. The Senate proposal commits to just a fraction of the spending cuts House Republicans want and includes a two year hike of the debt ceiling.

Right, now to our top story this morning, analysts at JP Morgan are telling investors that the Trump tariffs will likely trigger a recession this year in the U.S. and around the world. The president announced sweeping new tariffs on almost all trading partners Wednesday.

Now, they start at a baseline of 10 percent, but 60 countries deemed to be the worst offenders, according to the president, will be subject to additional levies among the highest, Cambodia at 49 percent and Vietnam at 46 percent. Now, not even the closest U.S. allies will be spared. Japan, South Korea and the EU, the European Union, all facing tariffs of 20 percent or more. But the president says he's being generous.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories and foreign scavengers have torn apart our once beautiful American dream. We will charge them approximately half of what they are and have been

charging us. So the tariffs will be not a full reciprocal. I could have done that. Yes, but it would have been tough for a lot of countries.

(END VIDEO CLIP)

SOLOMON: Nearly every country that trades with the U.S. is impacted by President Trump's tariffs. Let's go now live to Tokyo and CNN's Hanako Montgomery. Hanako, good morning to you.

So talk to us about the reaction we've seen in the Asian markets. Also, what's being said so far in the region about these tariff hikes?

HANAKO MONTGOMERY, CNN CORRESPONDENT: Hi, good morning, Rahel. So there's a lot of shock in the Asia-Pacific region and we've seen stock markets across Asia-Pacific close much lower, several percentage points lower with the Tokyo Stock Exchange leading losses. The benchmark Nikkei 225 closed about three percent lower and some Australian stocks also closed about one percent lower.

But interestingly, Rahel, Asian countries haven't announced any specific reciprocal tariffs or countermeasures to the United States's tariff hikes. Here's what the Australian Prime Minister, Anthony Albanese, had to say about Trump's latest tariff moves.

(BEGIN VIDEO CLIP)

ANTHONY ALBANESE, AUSTRALIAN PRIME MINISTER: This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth. We will stand up for Australia.

We will continue to make the strongest case for these unjustified tariffs to be removed from our exporters.

(END VIDEO CLIP)

MONTGOMERY: Now, in Japan, the Japanese Prime Minister, Shigeru Ishiba, has said that it's very regrettable and unfortunate that the United States has not exempted this East Asian country and a longstanding ally of the United States from his latest tariff hikes. And of course, when we're talking about East Asia specifically right here, Rahel, Japan and South Korea will be hit particularly hard because of those 25 percent automobile tariffs that we're going to see.

Japan, of course, three percent of its GDP comes from the automobile industry. And as the Japanese prime minister said earlier today, the country has created 2.3 million jobs in the United States, specifically in this sector. But of course, that could be subject to change in the coming weeks, if not months, because it could be too expensive for Japan to create cars and jobs in the U.S.

Now, also, Rahel, I want to talk about China, because, of course, we've seen tariffs on the country go up to 54 percent, very close to that 60 percent benchmark that the United States president promised during his campaign trail, which, of course, will deliver a significant blow to China, which is already grappling with a lot of economic issues.

But also important to note here, as you mentioned, Rahel, is that Trump announced tariffs on Vietnam and Cambodia to Southeast Asian countries where many Chinese and international companies have recently been moving production to in order to avoid the existing levies.

But clearly, Rahel, as we've seen, there is no avoiding Trump's tariff wrath. Back to you.

SOLOMON: Yes, very interesting. We heard him say that he has a lot of respect for Xi, but clearly that did not mean that there were any exemptions. We just saw him meet with the Japanese prime minister.

[04:35:00]

Clearly, that didn't change things, at least from what we can see. Hanako Montgomery in Tokyo. Hanako, thank you.

Well, to other news this morning, the Trump administration admitted in a court filing this week that it mistakenly deported a Maryland father to El Salvador due to a, quote, administrative error. And it claims that it cannot bring him back to the U.S. because, well, now he's in Salvadoran custody.

Kilmar Armando Abrego Garcia is believed to be held in the country's notorious mega prison. He is a Salvadoran national who had been granted protection status as a U.S. immigration judge -- by a U.S. immigration judge back in 2019. His attorneys filed a lawsuit Wednesday saying that immigration courts are rendered useless if the government can simply deport whoever they want, whenever they want, and not fix their mistake.

The filing says, quote, Defendants have already washed their hands of plaintiffs, of his U.S. citizen wife, of his autistic, nonverbal, five-year-old U.S. citizen child. This is an outrageous set of facts.

(BEGIN VIDEOTAPE)

SIMON SANDOVAL-MOSHENBERG, ABREGO GARCIA'S ATTORNEY: The administration is basically saying, well, we've tried nothing and we're all out of options. We don't accept that. The very first thing they have to do is make a good faith request to the government of El Salvador to return Kilmar to our custody.

They haven't even so much as picked up the phone to ask yet. So we figure that that's the first step, at the very least, that the court can order on Friday afternoon.

If nothing else, we hope that the rule of law is going to be respected from here on out and they won't do this kind of indiscriminate round people up and stick them on airplanes without even checking twice.

I've had multiple cases over the decades in which there have been erroneous deportations. It does happen from time to time. But in every previous case, as soon as we brought it to the government's attention that they had done it, they moved mountains to get the person back.

What's new, unique and terrifying about this case is that their attitude is, yes, we made a mistake. Too bad for him.

(END VIDEOTAPE)

SOLOMON: All right, so ahead, Secretary of State Marco Rubio will spend the next two days meeting NATO defense ministers in Brussels, why the U.S. secretary of state will likely find himself taking heat from fellow diplomats coming up next on CNN.

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SOLOMON: Welcome back. As the Trump administration pushes Russia and Ukraine to agree to a ceasefire, a senior Russian negotiator is in Washington for meetings with top U.S. officials, including U.S. Envoy Steve Witkoff. Kirill Dmitriev is a close advisor to Vladimir Putin and worked with Witkoff on the prisoner exchange that freed teacher Mark Fogle.

This is the first time a senior Russian official has been to Washington since Moscow invaded Ukraine in 2022. The U.S. reportedly had to temporarily lift sanctions imposed against Dmitriev in order for the State Department to grant him a visit.

NATO foreign ministers are gathering in Brussels this hour, kicking off a two day meeting that will undoubtedly focus intensely on the war in Ukraine. Among those in attendance, U.S. Secretary of State Marco Rubio, he is likely to face questions about Trump's willingness to move closer to Russia in an effort to broker a ceasefire. Rubio can also expect to feel tensions over Trump's recent insults against NATO allies, Canada and Denmark.

Let's bring in our Clare Sebastian, who joins us now with more. Clare, Rubio is arriving at a moment when a lot of American allies are anxious about the tariff agenda, his agenda in general. What kind of headwinds will he be confronting when he's in Brussels?

CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, I think, look, it's it's interesting this coming just hours after that tariff announcement, a very early test today of how the Trump administration's economic goals will collide with their geopolitical goals. We just saw the NATO Secretary General Mark Rutter arriving at the NATO headquarters there in Brussels, and he shrugged off the whole issue of tariffs. He said, look, this isn't about economic issues.

But we have heard from the Belgian deputy prime minister and foreign minister in a statement this morning who said, look, Belgium's growth could be affected. And this at a time when the United States itself is asking us to increase our defense investment spending. So I think that is potentially setting the tone for today's meeting. They are now facing these additional economic headwinds at the same time as the U.S. demanded increase in defense spending, which, by the way, is already underway. European nations have been committing to this and making changes. But it is a major reordering of their national budgets for many countries.

So I think clearly many will go into this off the back of that tariff announcement thinking that it just got harder both politically and economically. And, of course, the ramp up in defense spending is the biggest issue on the table today.

Marco Rubio in a statement on X as he departed for Brussels saying that he will bring President Trump's demand for 5 percent defense spending from the NATO allies, which, by the way, is more in terms of percentage than the U.S. currently spends.

But look, the other issue is, of course, Ukraine very much related. And I think the NATO allies will be looking to Marco Rubio, who is really seen as one of the more NATO friendly of the top tier of the Trump administration, to decipher some of the mixed messages that we've been getting recently. Number one, of course, that President Trump appears to have slightly soured on Putin, expressing his anger just a few days ago.

Well, at the same time, of course, we see Russia ring friends from these latest tariffs and this visit by Kirill Dmitriev, the head of -- key sort of economic aid to President Putin to Washington, as you say, the first Russian official to do so, to go to Washington since the start of the war.

So they will be looking for what this means for next steps.

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And I think crucially for any clues as to what kind of a role the U.S. might be willing to play in postwar security guarantees for Ukraine. The secretary general going in this morning reiterating that he believes the U.S. is committed to a lasting, enduring peace. So I think that is something that will come up in discussions as well -- Rahel.

SOLOMON: Yes, certainly a lot to watch here. But also all eyes, of course, on that meeting, that scheduled meeting between Putin and Trump next month, perhaps in Saudi Arabia. Clare Sebastian in London. Clare, thank you.

All right still ahead for us, another jump in Myanmar's death toll after the disastrous earthquake amid word of a ceasefire. We'll be right back.

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SOLOMON: All right, on to another incredible rescue from the earthquake rubble in Myanmar. Rescuers say that they used special cameras to locate a 40-year-old man who survived more than five days under a collapsed building. They say he's now in the hospital and that he's doing OK. Authorities say that more than 3,000 people are now confirmed dead nearly a week after that powerful quake.

Hundreds more are missing, meaning that the death toll is expected to keep rising. Meanwhile, Myanmar's ruling military government has ruled a three-week ceasefire in its battle against armed opposition groups. Relief efforts have been hampered by Myanmar's civil war, with the Red Cross warning that access to health care and clean water is now severely limited.

More than 500 buildings have totally collapsed. That's according to Doctors Without Borders.

And this week, the U.S. State Department pledged $2 million in aid to Myanmar. But the response follows the Trump administration's efforts to dismantle USAID by shuttering lifesaving programs and laying off thousands of foreign service workers around the globe. Staffers like Charlie Doom, a conflict specialist who risked her life working in places like Somalia and Myanmar. She had been serving as the deputy director for economic growth and food security coordinator for Burma.

Doom was based in Thailand with her wife, who was 31 weeks pregnant and suffering complications deemed life-threatening to her and their baby. But their request for a medical evacuation was denied twice by the State Department. They have been stuck in Bangkok, where her wife just gave birth.

Doom spoke to CNN's Jake Tapper. Take a listen.

(BEGIN VIDEOTAPE)

CHARLEE DOOM, FIRED USAID WORKER: My wife was the first person that I have been able to find in the entire 61-year history of USAID that was denied an obstetric medical evacuation, which is a standard right of all foreign service officers and their families. And she was denied that right because Peter Morocco and others that are part of this administration deemed the funding for medical evacuation and hospitalization support for USAID officers wasn't necessary. And so they zeroed that line item out.

JAKE TAPPER, CNN ANCOR, THE LEAD: You've also spoken to multiple USAID families who also are in pregnancies situations and in limbo, who are also trying to get home for medical care. What have they told you?

DOOM: There are more than 70 other pregnant and postpartum families that I've identified since February 11th when I sent out a note to colleagues to see who else was in a similar boat in the time since February 11th. Three of those families have experienced miscarriages. Six of those families have had preterm births with multiple little babies and spending extensive time in NICU.

These are all things that didn't need to happen.

(END VIDEOTAPE) SOLOMON: OK. Now to new developments out of Hungary, where the government there has just announced that it will withdraw from the International Criminal Court. That news comes as Prime Minister Viktor Orban welcomed Israeli Prime Minister Benjamin Netanyahu to Budapest for a four-day visit.

The trip is seen as a direct challenge to the authority of the ICC, which issued a warrant for Netanyahu's arrest last year over allegations of possible war crimes in Gaza. Since then, the Israeli leader has not visited a country under the court's jurisdiction until now.

CNN's Nada Bashir joins me now from London with more. Nada, what more do we know about this decision to withdraw from the ICC?

NADA BASHIR, CNN CORRESPONDENT: Well, look, Rahal, the timing of this announcement by the Hungarian government is key, of course, as you mentioned, coinciding with the visit of the Israeli Prime Minister Benjamin Netanyahu. The first time Netanyahu has set foot on European soil since that ICC arrest warrant was issued in May of last year.

And of course, it's important to remember and note that the Hungarian Prime Minister, who we saw meeting with Netanyahu earlier this morning, was among the first to criticize that decision by the ICC, despite being a signatory at the time, describing the decision as brazen and totally unacceptable. But of course, important to also underscore the allegations that Netanyahu is facing.

The arrest warrant that is currently issued against him by the ICC comes after the court found that they had reasonable grounds, according to the court, that Netanyahu bears responsibility for war crimes with regards to the situation in Gaza and the Israeli military's conduct in Gaza with crimes, including using starvation as a method of warfare and crimes against humanity. So we are talking about very serious allegations here issued by the ICC.

And of course, now Hungary, which has in the past criticized that decision now, saying that it will plan to withdraw from the ICC, making it the first European nation to do so.

So a serious step taken. And of course, the symbolism of this as Netanyahu visits the country is key as well, showing that allyship between the two nations. But of course, important to remember that as this visit takes place, four days, of course, Netanyahu expected to spend in Hungary.

[04:55:00]

We are also seeing the expansion of the Israeli military's operation in Gaza with plans announced by the defense minister to seize yet more territory in Gaza, in southern Gaza, with civilians in parts of southern Gaza surrounding the Rafah area now being ordered to evacuate and move north.

So a deteriorating situation since the ceasefire broke down in late March. We have seen hundreds killed already just in that short space of time, more than 50,000 people in Gaza killed overall. And of course, you can imagine that we have seen protests not only in Israel, but globally as well against what we are seeing in Gaza.

So a huge amount of focus will be placed on this visit by Netanyahu to Hungary.

SOLOMON: Nada Bashir reporting live for us there in London. Nada, thank you.

And thank you for joining us. I'm Rahel Solomon. That will do it for this hour. But I will be back with more EARLY START right after this break.

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