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One World with Zain Asher
Trump's 25 Percent Tariff On All Imported Vehicles Takes Effect; U.S. Marketplace Plunge After Trump Unveils New Tariffs; Canada And Mexico Spared From Latest Round Of Trump Tariffs; Impact Of Trump Administration's Tariffs On Canada; Trump Tariff Announcement Triggers Global Shockwaves; Some Republicans Breaking With Trump On Tariffs. Aired 12-1p ET
Aired April 03, 2025 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[12:00:31]
ZAIN ASHER, CNN ANCHOR: Coming to you live from New York, I'm Zain Asher.
BIANNA GOLODRYGA, CNN ANCHOR: And I'm Bianna Golodryga. You are watching the second hour of ONE WORLD.
World leaders are threatening to retaliate against Donald Trump's dramatic trade war escalation that is leading analysts to warn a global -- that it
could trigger a global recession.
ASHER: Yes. And right now, the economic fate of millions, if not billions of consumers worldwide really hanging in the balance. Global investors are
already weighing in, with markets around the world seeing a massive sell- off.
You see the Dow there down over 1,000 points. All three major indices plunged minutes into the trading day. And as you can see here, they all
remain in the red right now.
GOLODRYGA: That follows the president's announcement on Wednesday of a 10 percent baseline tariff on all imports to the U.S. and much higher duties
on some of the nation's largest trading partners.
Separately, Trump's previously announced 25 percent tariff on imported automobiles is now in effect.
A short time ago, the U.S. Commerce Secretary told CNN that there's no chance the president will back down.
(BEGIN VIDEO CLIP)
HOWARD LUTNICK, U.S. COMMERCE SECRETARY: I don't think there's any chance that President Trump's going to back off his tariffs. This is the
reordering of global trade.
Let's let American workers succeed and prosper. Let's build factories in America. Let's let us export to the world.
(END VIDEO CLIP)
ASHER: And here's what the U.S. vice president said a little earlier.
(BEGIN VIDEO CLIP)
JD VANCE, VICE PRESIDENT OF THE UNITED STATES: We know people are struggling. We're fighting as quickly as we can to fix what was left to us,
but it's not going to happen immediately.
For 40 years, we've had an economy that rewards people who ship American jobs overseas and raises taxes on American workers. And we're flipping that
on its head.
(END VIDEO CLIP)
ASHER: When Trump took office, he inherited a strong economy that was described as the envy of the world. And leading economists warn it's the
consumer who's going to pick up the tab on tariffs, which are essentially a national sales tax on imports.
CNN's Omar Jimenez joins us now outside of Detroit, Michigan. And, Omar, we're already hearing from some of the major carmakers of potential
layoffs, at least short term, in response to these new tariffs. And Detroit obviously is ground zero for where the majority of them here in the United
States are produced and manufactured.
Give us a sense of what you're hearing at that dealership.
OMAR JIMENEZ, CNN CORRESPONDENT: Yes. So I think the consensus is that there is no part of this industry that won't feel the effects of tariffs,
whether it's the manufacturers, automakers, of course, down here, the dealers, and of course, the consumers as well.
This particular dealership in Southfield, Michigan, which is just outside Detroit, we've spoken to some customers who have tried to actually get in
and purchase or lease a vehicle before these expected prices go up.
And I want to bring in Mr. George Glassman here, who is the executive, the president of this auto group. Just give me a sense of how you're taking in
this news. How are you sort of preparing for what's next year?
GEORGE GLASSMAN, GLASSMAN AUTOMOBILE GROUP OWNER: Well, there's a lot of uncertainty out there, but one thing that's certain is that all the cars on
the ground are tariff free. And so --
JIMENEZ: So the ones currently in your inventory?
GLASSMAN: Correct.
JIMENEZ: Yes.
GLASSMAN: So we're taking a very positive approach because that's the only way that we know how to do things at the moment. And because it's a buying
opportunity, we're in a position to avoid -- the customers can avoid all the effects of the tariffs by doing something now. So we're obviously
encouraging people to make a decision.
JIMENEZ: But obviously, that's a ticking clock at this point.
GLASSMAN: Absolutely.
JIMENEZ: When we get to that point, I mean, do you anticipate having to raise your prices?
GLASSMAN: Well, a lot of it's going to -- the answer is yes. A lot of it's going to depend on what the manufacturer does. And I have no doubt the
manufacturer is going to pass the costs on to the dealers. And then ultimately, the consumer is going to be the one that would have to pay the
price.
JIMENEZ: And, you know, we were here yesterday and we talked to two customers who literally told us they were here because of tariffs. They
wanted to get something before prices went up. How prevalent has that been even in the lead up to the tariffs? Because we've known at least the auto
ones, the 25 percent ones were coming for quite some time.
GLASSMAN: Yes. It's absolutely people are calling. They're coming in. It's absolutely prevalent. It's absolutely front and center stage for buyers
right now.
And many of them are considering other alternatives such as leasing, which would help keep their costs down. So there are some avenues to go.
JIMENEZ: And, you know, one of the thing for you guys don't know, I've gotten to know George, but his father helped start this back in 1969.
You've been doing this for 40 plus years, correct me if I'm wrong.
[12:05:03]
GLASSMAN: No, that's correct.
JIMENEZ: So you've seen a lot of different things come and go. Trade wars here, pandemics.
How would you sort of compare this era that we're entering? And do you have a playbook, I guess, so to speak, for what we're seeing?
GLASSMAN: Well, so I don't think we've seen this type of disruption in the 40 years I've been in the business. But having been through the pandemic
and the chip shortage and all of the things that disrupted our business back then, you know, we have to deal with what the known is.
And like I had indicated, right now for us, we're working on making sure our consumers know that cars here are tariff-free. And what happens down
the road, none of us know.
But one thing's for sure, you can't produce or manufacture a plant and have it be operational in a year or two or possibly even three. So I'm not
really sure where this is all going.
JIMENEZ: Yes. And the last thing I'll ask you is just, you know, you've been talking to customers, you've been talking to people in the Southfield,
Detroit area. Do you get the sense that the anxiety here is about the tariffs themselves or about the unknown?
GLASSMAN: I think it's a little bit about both. But the unknown obviously is far worse than what people know. And again, I'm still hopeful there's
going to be some negotiations that occur, but you have to -- you have to deal with what you know now. And like I said, that's how we're operating.
JIMENEZ: George, appreciate you taking the time.
GLASSMAN: Thank you so much.
JIMENEZ: Dealer -- running a dealership, auto group here in the Detroit area, and, of course, has been doing so for decades. Detroit has seen the
ups and downs of the auto industry sort of being the bellwether for American auto for so many years at this point.
And people here, both at the sales level but also at the consumer level, taking these tariffs very seriously. And even one customer joked with me,
this is the first time they had to think macro economically when coming in to buy a vehicle, and that's likely going to continue at least for the
immediate future.
GOLODRYGA: Yes. And that buyer probably also agrees with so many economists. The majority of economists that say, you know, this doesn't
make sense. And unlike previous crises that the industry has faced in recent times, the difference here too is that this is really a self-
inflicted one. Omar Jimenez, thank you so much.
ASHER: Thank you, Omar.
So how popular are Trump's tariffs? No one better -- no one better to answer this question than our dear friend. He's like a brother to us, isn't
he? Brother to the show.
GOLODRYGA: Brother, friend, mentor.
HARRY ENTEN, CNN CHIEF DATA ANALYST: Mentor?
ASHER: My eyebrows are like, when she said that. So, Harry, it's interesting because -- stop making me laugh.
Harry, it's interesting because Donald Trump has completely upended sort of decades of policy or the viewpoint that most Republicans have that there
should be free trade.
So I guess my question is, that's one side of it that's confusing to a lot of people, but how do ordinary Americans feel about these tariffs?
ENTEN: Oppose, oppose, oppose. No, no, no. I mean, you know, Omar was at that car dealership, right? Oppose new tariffs on other countries. We got
all goods, 56 percent. How about cars, where Omar was, outside of Detroit? Oppose, 56 percent.
No matter what poll you look at, Americans oppose tariffs on pretty much all countries except for maybe China, and certainly they oppose them on our
allies, right?
OK. So you take a look here. The opposition. How do Americans feel that these tariffs are going to impact their wallet in the short term? This, to
me, is one of those stats that really surprised me. Not the 72 percent who say that tariffs will raise prices in the short term.
But look at this, 64 percent of Republicans say it will raise prices in the short term. So it doesn't matter your political stripe. Pretty much all
Americans agree that tariffs will raise prices in the short term.
Get this, just five percent, five percent of Americans overall believe that prices will go down in the short term. That five percent, very much opposed
to what the economists are actually saying.
And then finally, I will note this little nugget for you, which is, should be a high priority for Donald Trump? Get this, number one, they say the
number one priority should be the economy, 82 percent. How about 80 percent who say inflation?
Guess where tariffs rates on this? Just 30 percent, eight on a list of eight. And yet, Donald Trump continues to charge forward, wanting to charge
tariffs on basically every single country in the hemispheres that exists on our earth.
And I truthfully don't understand it from a political point of view, but maybe Donald Trump knows something about politics and knows something about
economics that is out of the reach of us mere mortals, my dear friends.
And can I just add one little thing here at the end? You know --
GOLODRYGA: Sure.
ENTEN: Thank you. You know, a few days ago you asked me -- you asked me, you know, whether or not you hurt my feelings by talking about my
penmanship.
[12:10:03]
ASHER: I was worried. I was worried.
ENTEN: You were worried.
GOLODRYGA: That was me. That was me.
ASHER: You were sensitive.
ENTEN: You were worried. That did not hurt my feelings, but I've actually figured out what does hurt my feelings. Would you like to hear it?
ASHER: Uh-oh.
ENTEN: OK. What hurts my feelings is when people tell me that I am too loud because I just can't help it. I can't help it. I am so excited.
ASHER: Harry, you be you. You be you.
ENTEN: I have to be me.
ASHER: We love you. Don't ever change, OK? We love you just the way you are.
GOLODRYGA: Those are just the haters, Harry.
ENTEN: I don't deal with the haters. I only deal with the likers and the lovers like you two. And the like and love is similar on this side to the
other side of your T.V. screen.
GOLODRYGA: And Harry is on to the islands of Heard and McDonald to ask and poll the penguins and seals how they feel about being levied now with these
tariffs as well.
ENTEN: I'm on my way to Antarctica. Don't you worry. We have the plane leaving. It's 30 minutes after the show so I have to run off.
GOLODRYGA: Mentor, friend.
ASHER: Brother.
GOLODRYGA: Brother. Harry Enten, thank you.
ENTEN: Thank you.
ASHER: Thank you, Harry.
GOLODRYGA: All right. Well, investors are clearly rattled. The Dow down now by over three percent.
CNN's Vanessa Yurkevich is tracking developments from New York. And, Vanessa, we knew that this was going to be a major sell-off this morning
once those tariffs were announced yesterday and we saw the direction that futures went in last night.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, it's just more of the same. Investors clearly rattled by this tariff rollout.
Ultimately, it is worse than what investors were expecting. And you're seeing selloffs in the tech space, the retail space, especially companies
like Adidas, Nike, Restoration Hardware, their stock price plummeting about 40 percent as many of those brands get so much of their product from
countries, foreign countries that have now been slapped with double-digit tariffs.
We heard from the Commerce Secretary, Howard Lutnick, just moments ago and what he said was that President Trump is not backing off from these
tariffs. There's really no room for negotiation and that is concerning, again, for Wall Street.
They want to be acknowledged for the pain that people are feeling right now. They want to know that there is room for negotiation. They want to
know that productive conversations are being had right now. They want to know what the pain threshold is for the president and that's simply
something that they're not getting right now.
You know, we got yesterday a little bit of certainty, right? We know what these tariffs are on our foreign trading partners, but now there's this
level of uncertainty in terms of what other countries are planning to do in retaliation.
You can see right there on your screen, China hit with a 34 percent tariff, the European Union, 20 percent Vietnam, Japan, India, all double-digit
tariffs that are now going into effect on Saturday.
But ultimately, we are waiting to hear how those countries are planning to retaliate, which of course just escalates this trade war and makes prices
for U.S. consumers more expensive and then for consumers in those countries more expensive.
But Wall Street really just trying to attempt to shake off some of this news, but ultimately a broad-based sell-off as investors are just not
confident that businesses are going to be turning profits at the end of the day and consumers are ultimately going to pull back in spending because of
all of that.
GOLODRYGA: All right. Vanessa Yurkevich, thank you so much.
ASHER: All right. Joining us live now is Georgetown Law School Professor, Jennifer Hillman. She is one of the leading experts on trade law, having
worked for many years with the United States International Trade Commission. Jennifer, thank you so much for being with us.
I think the thing that a lot of people are scratching their heads over is really a couple of things. One is how the sort of levies were calculated
just in terms of the sheer amount. Bianna, you've been talking about that a lot.
But also, when you think about the countries that were targeted, a lot of sort of small, poor countries that don't even ship that much to the United
States being targeted, including uninhabited islands in the Southern Indian Ocean that really only have penguins and rocks and snow on them also being
targeted as well.
Just walk us through how the methodology worked out here.
JENNIFER HILLMAN, GEORGETOWN LAW SCHOOL PROFESSOR: Well, thank you very much. You are totally right that at some level, it doesn't make any sense
to start putting tariffs on all of these little tiny countries. The way in which we understand these amounts were calculated.
What was said was that they were going to cover a whole series of both how much tariffs are charged on American products, plus some other factors for
what is referred to as non-tariff barriers.
In reality, what the Trump administration did is simply take the amount of the trade deficit that we were running with that country, divided by the
amount of exports that they were sending to us, calculate that number and then cut it in half.
So again, it really bears no real relationship to the reality. Take for example, Korea. We have a free trade agreement with Korea. So the amount of
tariffs that U.S. products going into Korea has been charged has been zero under the free trade agreement. And yet, Korea gets hit with, you know, a
26 percent tariff on all of their products.
[12:15:17]
So, again, it was a -- it was a fairly gross calculation just literally based on last year's trade data. And as a result, again, a number of these
very small countries, least developed countries, countries that in no way are contributing to any kind of damage to the United States, are
nonetheless being subjected to these tariffs.
GOLODRYGA: Yes. You mentioned South Korea. Israel also just took away their tariffs against the United States to zero. And yet, they too were hit by a
17 percent tariff yesterday by the administration too.
So it does raise the question of what is the incentive for these countries to even negotiate away some of their tariffs if they're still going to be
slapped with some in response.
I'd like to play for you sound from this morning, not on CNN, but on CNBC. Commerce Secretary Lutnick asked about. Oh, we don't have the sound.
But I will read to you what he said when he was asked about the anticipation that this administration was fully aware of and knew in terms
of how the stock market would respond. Concerns about going into a recession, global reaction as well.
And he said the long term and even the medium term, the U.S. markets are going to do extremely well. I understand the reordering of the rest of the
world's market, but they have been taking advantage of the trading and market policy of the United States. They are designed to make them rich,
meaning the other countries, the United States poor. In the end, this will make our children and our grandchildren wealthier and more stable here in
the United States.
What does it tell you when even the administration that's imposing these tariffs states that it may be a long time before we reap the benefits?
HILLMAN: Well, I think they're obviously trying to at least insulate to some degree the amount of pushback, because unequivocally, this is the
largest tax increase on Americans that we've seen since the 1980s. It will leave our tariff rates at the highest rate they've been since the 1930s.
And we have to remember what happened in the 1930s when these high tariffs went on. Very much those tariffs, often referred to as the Smoot-Hawley
tariffs, were absolutely a part and parcel of contributing to how long and deep the Great Depression was.
So they know that we could be clearly entering into another Great Depression era with these very high levels of tariffs and taxes, you know.
And the other part of it, I think that they're trying to some degree protect against is the recognition that these tariffs are highly
regressive. Who has to pay the highest percentage of their income for buying imported goods that are now going to be higher priced is going to be
low and moderate income people.
So again, these are -- these are going to be very dramatic in terms of how much price increases they're causing. And they're trying to send the
message of it will all be worth it in the end.
And I think what you're hearing from many, many around the country is, no, it won't. Because it presumes that what it will do is cause everything to
be made in America. And that is simply not a feasible outcome. I mean, there are many things that we will never make in America. We will never be
significant growers of coffee or cocoa or avocados or bananas or lots of other things. There are certain other products that we will simply never be
competitive at making. So we will always have to be importing some things.
And this policy doesn't seem to recognize that that should ever be the case, that everything sold in America should be made in America. That is
not reality. And even if it was reality, it would take us decades to get there.
ASHER: That's such a good point. Trump saying that essentially he believes that by doing this, he's going to somehow turn the United States back into
some kind of manufacturing hub. And you're saying that that's not the case. And even if it was the case, it would take forever for that to happen. Yes.
HILLMAN: If you look, for example, one of the auto companies was saying that they might be able to restart an already existing plant. So, again,
this is a factory that's already there, et cetera. Even that restarting and retooling it to produce something different is a two-year horizon.
If you have to start from scratch to build a new company, a new manufacturing facility, you're talking at least five or six years. Again,
we have to -- yes, we have to remember that a lot of the tariffs are on component parts that are going into manufacturing.
So, again, it's already going to raise immediately the cost to make anything in the United States is going to get more expensive come Saturday.
GOLODRYGA: Yes. I bet the Google search for Smoot-Hawley has gone up significantly over the last 24 hours. And spoiler alert, it didn't end
well.
[12:20:03]
Jennifer Hillman, thank you so much for joining us.
HILLMAN: Thank you very much.
ASHER: All right. Still to come here on ONE WORLD, why Mexico says it's being given what it calls preferential treatment by the Trump
administration. We are live for you in Mexico City.
GOLODRYGA: Plus, Americans could be shelling out more bucks for their next bottle of wine. We speak with an Italian winemaker on how they are reacting
to Trump's sweeping tariffs.
ASHER: And later, the impact of tariffs on Canada. What they're saying in the hometown of Canadian hockey legend, Wayne Gretzky.
(COMMERCIAL BREAK)
GOLODRYGA: Well, Trump has been talking about his tariffs for months and America's international trading partners like China and Europe are readying
a series of retaliatory responses. But for regular people all over the globe, a trade war is very frustrating.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Such a serious global problem, I think, is going to create enormous potential recessions in so many countries, so many
economies. I think so many million people are going to be affected. So I think it's quite frightening that the guys allowed so much power.
UNIDENTIFIED MALE: If it's 10 percent on Australia, it's going to be 10 percent on our natural competitors, which would be Brazil, Argentina, and
some of the Asian countries, OK? So if we're all at 10 percent, it really doesn't change anything.
UNIDENTIFIED MALE (through translator): I think this is a big blow to Japan. I'm worried about the big main players, Toyota and Honda, and of
course their subcontractors. The prices are rising here and I'm very concerned about what will happen to the lives of people living in Japan.
UNIDENTIFIED MALE: I think they're, yes, short-sighted, a bit of an idiot, alienating themselves from the global market.
(END VIDEO CLIP)
GOLODRYGA: Mexico, though, still subject to prior tariffs, is exempt from the new levies. And Mexico's president had this to say about being spared
in the latest round of Trump administration tariffs.
(BEGIN VIDEO CLIP)
CLAUDIA SHEINBAUM, MEXICAN PRESIDENT (through translator): Well, it has to do with the good relationship we've built between the governments of Mexico
and the United States, which is based on respect, with respect for sovereignty, collaboration and coordination, but with respect for Mexicans
and national sovereignty.
(END VIDEO CLIP)
ASHER: Well, let's go live now to Mexico City, where we find CNN's Valeria Leon. So we heard President Sheinbaum there saying that this is because
they were spared tariffs this time around because of the positive relationship that she's developed with the United States and that her
strategy. She went on to say that it was really her strategy and her skill at negotiation that has really helped in this case.
[12:25:03]
But it is still worth noting that Mexico does still have to contend with the 25 percent tariffs on cars being imported to the United States.
VALERIA LEON, CNN CORRESPONDENT: That's correct. That's a major success. And this is how Mexico is describing its exemption from reciprocal tariffs
imposed by the U.S. government on countries across the world.
And Mexico's economic secretary, Marcelo Ebrard, said Mexico's request for special treatment regarding U.S. tariffs on Mexican imports has been
recognized with this agreement.
And Mexican president, Claudia Sheinbaum, credited what she called the good relationship of mutual respect, as we just heard, between both nations for
this exception. Mexico's products, under the USMCA trade agreement, will continue to enjoy a zero percent levy, which will safeguard some 10 million
jobs in the country.
But 50 percent of Mexico's exports are not protected by the USMCA trade agreement, so the government's strategy is now to try to bring products
currently excluded from the USMCA under its umbrella, which President Sheinbaum said she would push for in future negotiations with the U.S.
government.
However, President Trump has said, over the past days, he intends to cancel the USMCA but needs congressional approval to do so. Although Mexico was
accepted for these reciprocal tariffs imposed on other countries, the 25 percent tariff on steel and aluminum and vehicles established last month
will remain in place.
But Mexico's president has expressed confidence her government will be able to reach further agreements for tariffs reductions and will be sending
Mexico's economic secretary to Washington in the next 40 days to start a new round of negotiations to meet this goal.
She also expressed optimism that in the worst-case scenario, just one tariff will remain in place on Mexican exports. She has this plan that
she's going to present today to confront that Trump tariffs will focus mainly on strengthening national industry to cope with what she called the
new international economic reality.
Instead of Mexico putting in place a series of reciprocal tariffs on U.S. products, Sheinbaum has included new incentives to increase Mexican car
production, and the goal is to reduce its dependence on the U.S.
ASHER: All right. Valeria Leon, live for us. Thank you.
GOLODRYGA: Well, like Mexico, Canada was notably left out of President Trump's newest tariffs. Canadian imports remain under the 25 percent levies
since this administration imposed weeks ago.
CNN's Paula Newton reports on how tariffs are affecting the hometown of hockey legend, Wayne Gretzky.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): We've come to a place that leans into a Canadian stereotype quite naturally. And is now on the front
line of a trade war.
GRAEME ROUSTAN, OWNER, ROUSTAN HOCKEY: This business here has been in place for 178 years, and has been selling product and trading products with the
United States since before Canada was a country.
NEWTON (voice-over): We're in Brantford, Ontario a little more than an hour away from both Toronto and Buffalo, one of the places likely to be hardest
hit by tariffs and the birthplace of hockey's Great One --
LARRY KING, FORMER CNN HOST: Where did you grow up?
WAYNE GRETZKY, HOCKEY PLAYER: I grew up in a town called Brantford, Ontario.
NEWTON (voice-over): -- Wayne Gretzky.
ROUSTAN: These are all signed by Wayne Gretzky.
NEWTON (voice-over): With tariffs looming, owner, Graeme Roustan, says business is already down about 10 percent.
ROUSTAN: Well, for us, it's a disaster day.
NEWTON (voice-over): U.S. customers want their orders before tariffs hit.
ROUSTAN: All these are going to the Miracle on Ice, Team U.S.A. 45th anniversary.
NEWTON (voice-over): President Trump's tariffs and taunts to make Canada a 51st state are biting here.
ROUSTAN: It's just ridiculous to insult your neighbor and as a dual citizen, Canadian and American, I don't understand it from the American
point of view either, why would we insult Canadians?
NEWTON (voice-over): In Brantford and across Canada, buying American now seems like an act of treason.
INES KOWAI, PLANT MANAGER, UNIQPOL: Even in our store, we get asked all the time, you know, are these products local? Have they been made in Canada?
NEWTON (voice-over): Brantford's mayor is incredulous about how the U.S.- Canada bond so frayed in the last few weeks.
MAYOR KEVIN DAVIS, BRANTFORD, ONTARIO: It's a mutually beneficial relationship --
NEWTON: Until it wasn't.
DAVIS: -- until it wasn't. You know, we're nice until we're not. And, yes, if you want a war, then it's a war. But it's a -- it's a totally
meaningless war from my perspective. I just -- I really, frankly don't understand it.
NEWTON (voice-over): Something else he doesn't understand how Wayne Gretzky, Brantford's hometown icon, got wrapped up in all of this.
[12:30:05]
TRUMP: I have so many great friends. One of them is the Great One, Wayne Gretzky.
NEWTON (voice-over): He has been called a traitor, a turncoat, a MAGA junkie, a MAGA sidekick.
DAVIS: Based on 30 years of knowing Wayne and his family, so I'm getting a little bit emotional.
NEWTON: There are people that want to take his name off the buildings here.
DAVIS: Well there are -- I agree with you, there are people that feel strongly about it and feel emotional, very emotional about this, because we
do feel under attack here in Canada.
NEWTON (voice-over): Wayne Gretzky declined comment to CNN.
At the local community center --
UNIDENTIFIED MALE: Well, there's a goal.
NEWTON (voice-over): The Brantford Titans are on the ice. Gretzky's name on the rink.
TERRY CORBIN, BRANTFORD, CANADA RESIDENT: He hasn't lived here for how many years. I mean, I almost see him as, you know, kind of somebody with dual
citizenship, but who has chosen, you know, United States of America to live in.
NEWTON: You want him to speak up for Canada?
RICK MANNEN, BRANTFORD, CANADA RESIDENT: I do. I do. He's kind of the voice of Canada. He has been that way in the past, and he is now if he chose to
do that.
So I really would like to see Wayne do that, but I still don't feel any ill against Wayne for -- just because he's a friend of Donald Trump.
NEWTON: Do you think he could put in a word?
KAREN ROBB, BRANTFORD, CANADA RESIDENT: Love it if he would. You know, we don't want anybody to get hurt. We want businesses to flourish both in the
U.S. and in Canada. There's got to be a way to do that without just slapping tariffs, you know, here and there and everywhere.
ROUSTAN: I think that as soon as you start talking about invading another country or taking it over, the disrespect that that presents to people, it
wakes them up and it creates a tremendous anger.
NEWTON (voice-over): How long that anger lingers here will depend on what happens with tariffs and the taunts. And while Gretzky has a solid reserve
of goodwill here, after decades of donations and devotion to his hometown, Brantford, like Canada, has found its limit.
Paula Newton, CNN, Brantford, Ontario.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
[12:35:50]
GOLODRYGA: All right. Welcome back to ONE WORLD. I'm Bianna Golodryga.
ASHER: And I'm Zain Asher.
European markets closed down sharply last hour, impacted by the Trump tariffs, which hit -- which continue. And European leaders have not held
back in expressing their displeasure.
CNN's Fred Pleitgen has more reactions from Europe.
(BEGIN VIDEOTAPE)
FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): As shiny German cars roll onto massive cargo ships for export, fear is
spreading here that the seas could soon get a lot rougher, after President Trump hit auto imports to the U.S. with a 25 percent tariff.
European exporters hoping Americans love German cars more than the U.S. leader loves tariffs.
For the American market, this port handles mostly higher-priced vehicles, the port's CEO says. We hope the buyers who purchase these rather expensive
cars are not so price-sensitive that they would refrain from buying them simply because they're subject to high tariffs.
But the German auto industry is already in a major crisis, with massive sales and revenue drops leading to job cuts and restructuring programs.
PLEITGEN: And it's not only the German auto industry that's in trouble. This country is in the midst of a protracted and worsening recession. And
the last thing Berlin needs now is a trade war with one of Germany's most important trading partners.
PLEITGEN (voice-over): In Berlin, people lashing out at the U.S. president for potentially exacerbating the woes.
We in Europe really need to concentrate on ourselves at the moment, this man says. The strengths are there in Europe in terms of industry,
development and technology.
And this man says, nobody will actually gain anything except perhaps Donald Trump's ego.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This is one of the most important days, in my opinion, in American history. It's our declaration of
economic independence.
PLEITGEN (voice-over): From fine Italian cheese and delicious Parma ham to French champagne and cognac, the Trump administration is slapping a 20
percent tariff on goods from the European Union, citing the E.U.'s trade surplus with the U.S., a move the Europeans say is deeply unfair.
While they acknowledge Europe runs a trade surplus of about $173 billion with the U.S. when it comes to goods, for services there's a trade deficit
with the U.S. of about $120 billion, Brussels says, largely evening things out.
And the bloc's leadership vows they will strike back at Trump.
URSULA VON DER LEYEN, PRESIDENT, EUROPEAN COMMISSION: We are already finalizing the first package of countermeasures in response to tariffs on
steel. And we're now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.
PLEITGEN (voice-over): And if those negotiations do fail, small businesses are set to suffer.
The small Greek Kalavryta Cooperative for feta cheese had its sights set on entering the U.S. market this year, but Trump's tariffs could drastically
change that equation.
The tariffs certainly add a cost to the product, the CEO says, and what share of that will go to the final consumer, where the roulette ball will
land, remains to be seen.
Like for so many on both sides of the Atlantic, for those working here, the Trump administration's trade policy first and foremost means one thing,
uncertainty about who are friends and who are foes in international trade.
Fred Pleitgen, CNN, Berlin.
(END VIDEOTAPE)
GOLODRYGA: Well, your next bottle of Chardonnay could cost you more, as Trump's tit-for-tat tariffs are already impacting some U.S. winemakers.
Time now for The Exchange. Joining us now is prestigious winemaker and President of the Italian wine union, Lamberto Frescobaldi. Thank you so
much for joining the show.
And listening to the response here and the impact this will have in particular on Italian winemakers, here's what the secretary general of the
Italian wine union had said. Compared to other European countries, Italy faces two major risks. First, we're more exposed to the U.S. market. And
second, Italy has a greater proportion of wines that are more vulnerable in this market, both in terms of exposure and average shelf price.
[12:40:16]
So talk to us about the impact that this will have on Italian wines.
LAMBERTO FRESCOBALDI, PRESIDENT, UNIONE ITALIANA VINI: Good morning. Yes, it will have an impact on many wines. On the price point of the Pinot
Grigio or the Prosecco, there are two very, very popular wines in the U.S. that have been exported since many years and with great success.
I do want to remember that in many, many parts of America, there are a lot of Italo-American heritage people that have put some restaurants on. And,
of course, it will affect those kinds of wines.
Some others, they're going to be less effective. The ones that are more expensive, I would say, the Barolos or the Brunellos, those ones that they
have already quite of an important price point, they were going to be less effective, but nothing to be -- to be happy about it.
This is a slap from one of the countries where we've been working since many, many years, since that there is a very strong relationship with
America. And so, it will be something that we will see what happens in the next few months.
Definitely, it's going to be a loss-loss situation, not a win-win situation. It's going to be a loss for both of us, for the consumers,
because some wines are going to become more expensive and some others that the producers are going to have to drop their prices.
So, there's going to be less revenues and less opportunities to pay back our people that they are working together with us.
ASHER: I want you to talk to us about how Italian winemakers had been preparing for this moment, because obviously, several weeks ago, there was
a report that the Trump administration was threatening possibly a 200 percent tariff on E.U. wine and alcohol exports.
Obviously, we haven't seen that today. That's not what we got today. But still, just walk us through how Italian winemakers were preparing in
advance of this moment.
FRESCOBALDI: We already had some fears far before in November. So, if we look at the amount of wine that has been exported at the end of 2024,
people were maybe thinking that the market was actually doing extremely well, and this was not. They were just stacking up wines, the distributors.
As you know, in America, there is a three-tier system since the end of probation. So, there is -- the way of wine and alcohol in general is
distributed. It's pretty expensive.
And so, at the end of 2024, the Americans actually stacked up their warehouses.
And when Mr. Trump started to talk about 200 percent taxes that was mid of March, nothing could have been done at that moment. As you know, there is
wine is shipped with containers, and it takes roughly 40 days.
And when he said that, it was mid-March, and April 2nd was around the corner. So, what happened? Our distributors were organizing themselves on
putting the wine in bonded houses, so not to go through duties and wait for what would have happened.
If we would have talked about 200 percent duties, it would have been the end of many, many wineries in Europe and in Italy, particularly where we
have small wineries. So, 200 percent would have been a real earthquake in our -- in our world.
And 20 percent, let's not think that that is far better. We have -- Italy is famous for a number of small little wineries. And some of them have 50,
60 percent of their turnover than in the United States. Those are in very difficult times. And to be very honest, we're pretty worried about it.
[12:45:10]
GOLODRYGA: Yes. The universal theme here, no matter what sector, what industry, what country, is just this concern over uncertainty. And that
really brings business to a standstill for whether in your industry with the grape crop in order to produce the wine. And we've talked to automobile
industry executives that are also worried about the same.
So this is among the top issues that we're hearing from people around the globe in response to these tariffs.
Lamberto Frescobaldi, thank you so much for the time.
FRESCOBALDI: Thank you.
And still to come for us, the headline reads Republican senators vote against Donald Trump's tariffs, but the reality is, the vote won't change
anything. We'll have a live report on how Republicans on Capitol Hill are reacting to the trade war in just a moment.
(COMMERCIAL BREAK)
GOLODRYGA: Well, it is exceedingly rare for elected Republicans to break with Donald Trump on just about anything.
ASHER: But there is growing uncertainty and unease in the party when it comes to the president's trade war.
On Wednesday, four Republican senators joined Democrats to pass a resolution that would undo Donald Trump's tariffs on Canada.
In reality, the vote is meaningless. And House Speaker Mike Johnson has ensured that his side of Congress will not take up the measure. Still, it
is seen as an embarrassment for the president. And some Republican senators are also expressing concerns about Trump's other tariff announcement.
(BEGIN VIDEO CLIP)
SEN. LISA MURKOWSKI (R-AK): One of the things that I'm hearing from folks back home is they're certainly afraid about what it could mean for price
and units.
SEN. THOM TILLIS (R-NC): Anyone who says there may be a little bit of pain before we get things right, need to talk about farmers who are one crop
away from bankruptcy. They don't have time.
SEN. RON JOHNSON (R-WI): I think Wisconsin will be particularly hard hit with all the manufacturing and agricultural interests.
(END VIDEO CLIP)
ASHER: Let's go straight now to CNN's Manu Raju with more on all this.
When you think about the Republican Party at its core, Manu, they are the party of free trade and Donald Trump has completely upended that. Take us
through it.
MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Yes, no question about it. It's changed the dynamic completely, which is why so many members are
uneasy.
Many of them came up the ranks during the Ronald Reagan era, during the Bush era. Bush ear in particular, they were pushing very hard for free
trade, for open trade, pushing for free trade agreements. That is absolutely not the case with Donald Trump, especially with these very
punitive tariffs.
[12:50:08]
And I've spent the last day, several days and weeks really, talking to Republican senators about their views on Donald Trump's actions here. And
in the aftermath of his move, just yesterday, a number of Republicans are expressing concerns.
(BEGIN VIDEO CLIP)
SEN. JERRY MORAN (R-KS): The consequences are yet to be fully known, but I would have thought they would have been less dramatic, less significant,
and more targeted.
And I think we ought to be focused on our economic adversaries and be less damaging to our economic allies.
RAJU: What about the impact on Kansans specifically, and the ag industry?
MORAN: So I've said this from the beginning that we often experience retaliatory tariffs that come against our commodities. And it's very
damaging.
SEN. JAMES LANKFORD (R-OK): I think there'll be some products that there's going to be benefit for, and some that will be detriment on it. And we've
got to be able to work this out.
RAJU: What might have a detriment?
LANKFORD: Things like clothing, electronics. Some of those things that are only made overseas now.
RAJU: You think people want to pay more for cars?
SEN. RICK SCOTT (R-FL): People want American jobs. This is about American jobs.
(END VIDEO CLIP)
RAJU: And that last comment coming from Senator Rick Scott, defending the president's actions here.
What you're hearing from a lot of Republicans is that they say, there's going to be some short-term pain through all of this. But Donald Trump's
long-term vision, they say, will bring back American manufacturing, would change -- improve Americans' wages.
And they talk about things such as changing how the regulatory environment here is the United States, extending the Trump-era tax cuts back from his
first Trump term.
The question is, though, that's going to take some time to take effect, if it does take effect. And will Americans be OK with having to pay for more
prices in the short-term? One Senate, key Senate Republican just weighed in on this as well. That's the majority leader of the United States Senate,
John Thune, someone who has pushed for free trade for years and years and years and represents an agricultural state of South Dakota.
He just told our colleague Ted Barrett, he said, we'll give them the benefit of the doubt and see how it's going.
So some unease there from the top Republican who's yet to criticize the administration, but is still uncertain about how this will all play out.
Zain and Bianna?
GOLODRYGA: Yes. Not exactly a campaign message. We'll see what happens if there's still this much pain and uncertainty around the midterms.
Manu Raju, thank you so much.
And we'll be right back.
(COMMERCIAL BREAK)
[12:55:14]
ASHER: All right. Welcome back. Donald Trump's global trade war is sending stock markets plunging. Let's take one final look at the numbers for you.
Here in the United States, the Dow is down about 1,300 points. It's been, of course, as we would expect, in the red all morning. I think the highest
-- the lowest rather, was at around 1,500 points down, but now it's recovered ever so slightly.
But there is pain in the markets as a result of this trade war --
GOLODRYGA: Yes. And the uncertainty remains. As we heard from Howard Lutnick, I mean, this is going to go in full effect.
So in terms of previous sell-offs, when one would hope for some sort of stability or remedy, it looks like that that's not going to be the case
here. There's not going to be a lifeline thrown for investors. And so we're likely to expect more bumpy, if not just bloody, days on Wall Street in the
days to come.
The European markets also closed down as well. We'll be paying close attention to Asia into the next few hours. And we'll be covering it all
again for you right back here tomorrow. Same time, same place.
And that's this hour, though, this show for us. I'm Bianna Golodryga. Thanks so much for watching.
ASHER: I'm Zain Asher. "AMANPOUR" is up next.
(COMMERCIAL BREAK)
[13:00:00]
END
