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The Situation Room

Trump to Announce Global Trade Plan; Israel Expands Military Operation in Gaza; Republicans Brace for Tariff Backlash; GOP Wins Both Elections in Florida. Aired 10:30-11a ET

Aired April 02, 2025 - 10:30   ET

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

[10:30:00]

PAMELA BROWN, CNN ANCHOR: Wolf?

WOLF BLITZER, CNN ANCHOR: Pamela, as we said the president, President Trump, will be in the White House Rose Garden just a few hours from now to announce his global trade plan. We'll take a closer look at the potential economic and political risks. That's coming up. Just ahead, stay with us. You're in the Situation Room.

(COMMERCIAL BREAK)

BLITZER: This morning, we're also following breaking news out of the Middle East. Israel is now announcing that it's expanding its military operations in Gaza. The Israeli defense minister says this involves large scale evacuations and seizing land that Israel plans to incorporate into its security zones. Israel is now ordering people in Gaza's Southern Rafah area to leave their homes and move north.

[10:35:00]

Let's go right now to CNN Correspondent Salma Abdelaziz. She's joining us from London right now. Salma, you're watching all of this very closely. First of all, what are you learning about these Israeli plans?

SALMA ABDELAZIZ, CNN CORRESPONDENT: What we understand is this is very preliminary, of course, Wolf, but it will deal a major blow to any diplomatic efforts because that's exactly what's been happening in recent days. There's been a negotiating effort, a push to restart that ceasefire that was shattered just a couple of weeks ago when Israel again resumed its offensive on Gaza.

Now, Israel's defense minister announced this plan, and as you mentioned, he said that it would include seizing large portions of land in the Gaza Strip and incorporating those into what the Israeli military calls security zones. He also added, as you mentioned, that there would be large-scale evacuations of Palestinians in the Gaza Strip. Now, a timeline for when that would happen or where those locations is not clear, but what is clear is that what we continue to hear from rights groups, which is that there is no safe place in Gaza. And many of these families have already been displaced many times before. The other thing to consider here is, of course, the hostages, the families of the hostages. The Hostage Forum was very quick to react to this news. It said that they were horrified to hear of the expansion of Israel's offensive on the ground, and they're demanding that the Israeli governments stand before the public and explain how this will ensure hostages come home, Wolf.

BLITZER: Salma Abdelaziz reporting the latest breaking news. Thank you very much. Meanwhile, countries around the world right now are anxiously waiting to hear from President Trump about his so-called Liberation Day today. We don't know much about his big announcement this afternoon from the Rose Garden over at the White House, but we do know that these new U.S. tariffs will affect all U.S. trading partners.

CNN's Chief Political Analyst David Axelrod is joining us right now. David, there are growing concerns, as you well know, that these tariffs could trigger a recession here in the United States, but the Trump administration is projecting total confidence. You've worked in the White House. Do you think there is concern about this behind closed doors, the potential negative impact of these new tariffs?

DAVID AXELROD, CNN CHIEF POLITICAL ANALYST AND FORMER SENIOR ADVISER TO PRESIDENT OBAMA: Well, there has to be, Wolf, because the president ran on a pledge to lower prices for people across the country. And tariffs obviously can have the opposite effect. The fact that we've read that they have been considering subsidies to farmers, which was something that they did the last time they imposed tariffs in the first administration suggests that they are aware of some of the negative effects of what might happen.

But, you know, here's the bigger issue is the president is -- you know, everybody's strength is their weakness. He is an instinctive, improvisational politician. But when it comes to issues like this that affect all the world in terms of their economy and certainly the American economy, you could see it in the stock market, impulsivity is not necessarily what people want. They want predictability.

So, I think as of yesterday, the word was they were still trying to put the finishing touches on these tariffs. That's a heck of a way to slide into this kind of major, major decision. And I think people are going to be watching with a great deal of anxiety.

BLITZER: Yes, we'll watch it and see what happens because the consequences could really be enormous. President Trump, as you know, David, has gone back and forth with these proposed tariffs since he returned to the White House on January 20th. There have been threats, then backtracking, then pausing, then more threats. How are these tariff threats impacting him, do you think, politically?

AXELROD: You know, I don't think -- you can look at polling and the public is more negative than positive on the impact of these tariffs. I think for those who embrace his idea that these tariffs will reinvigorate the American manufacturing sector, particularly in those belts of the country, industrial belts that were really hurt by globalization, I think you'll find some support. But I think a lot of other people are a little bewildered by it.

The tariffs against China makes sense to people. You can see that the tariffs on Canadian and Mexican goods do not particularly, and people are wondering about that. And the puzzling thing about it, Wolf, is the president is slamming the trade agreement that he himself negotiated and said at the time, six or seven years ago, that it was one of the great deals of all time. So, this is bewildering to people.

People don't see Canada particularly as a threat. And now, we're at loggerheads with them in ways that can really affect people's costs. Car manufacturing, for example. Prices of cars estimate is they may go up 11 percent on the average. That's real to people. That will touch them in their lives.

[10:40:00]

BLITZER: Yes. Canada traditionally has been our closest ally certainly. Last night, as you know, David, Republicans were able -- they succeeded in holding onto two House seats down in Florida, but with much slimmer margins than Trump won back in 2024. And in Wisconsin, the Democrat -- the Democratic-backed candidate for the State Supreme Court pulled off a big win. The Wall Street Journal editorial board calls the election results a backlash against MAGA and a warning for Trump to focus on what got him re-elected in the first place. That would be lowering prices for Americans. Do you see these races as a referendum on the Trump White House?

AXELROD: Look, I think Democrats will say that this was kind of an oasis in the desert. You know, for Democrats it was -- who have gone through a very, very difficult period after that election. I do think it has some meaning. One of the things, if I'm a Republican, that I would be thinking about is what are the limits of Elon Musk's benefits to the party? He came in late in that race. He spent $25 million. Certainly, that was helpful because the Republican candidate there was being outspent. But he also made himself the center of the race and Democrats were eager to allow that to happen.

And at a time when he is imposing cuts that are pretty controversial and affecting things like Social Security, healthcare, I think Elon Musk has become a lightning rod and he's far less popular than the President. Republican --

BLITZER: I think we may have just lost our connection with David Axelrod, but we'll continue these conversations with him down the road. To David, if you can hear me, thank you very, very much. Pamela/

BROWN: And certainly, it's a very busy Wednesday, Wolf. Coming up. President Trump's tariffs could mean you'll pay more for things you use every day, just like you were talking about with David, and they could come with a high political cost for Republicans. We're going to ask a GOP Congressman if he's concerned at all. That's next in the Situation Room.

(COMMERCIAL BREAK)

[10:45:00] BROWN: And just over five hours from now at the White House, President Trump is due to unveil his sweeping new global tariffs. But those details yet to be released. We do know that he will target countries that currently impose tariffs on U.S. goods that they import. Joining us now is Republican Congressman Mike Turner of Ohio. Congressman, always nice to see you here in the Situation Room.

REP. MIKE TURNER (R-OH), ARMED SERVICES COMMITTEE, OVERSIGHT AND GOVERNMENT REFORM COMMITTEE AND FORMER CHAIRMAN, INTELLIGENCE COMMITTEE: Good morning. Thanks for having me.

BLITZER: So, look, I mean, Americans are nervous. Inflation remains volatile. The stock markets are down and economists are warning of a possible recession or stagflation that's been thrown around as well. No one really knows, right? Is President Trump taking a gamble with the U.S. economy right now?

TURNER: Well, this is very important because what the president's doing is he's saying there are individuals, there are countries that have been taking advantage of our economy. We've been subsidizing their economy. And one way to protect our economy are our tariffs. We're going to, in fact, punish their activities, the manner in which they've taken advantage of our com our country.

They -- he's spoken of reciprocal tariffs. Their tariffs against our country, our markets. We're going to then, you know, respond with tariffs. Also, there are national security concerns that we have for markets for types of productions, steel, aluminum, those are productions that we need to protect.

There are also issues where we want to have increased production in markets where we look to industries such as automobiles, those types of productions. Areas in which we want to encourage production that have been disadvantaged as a result of some countries that have been dumping products, over subsidizing them, you know, perhaps there haven't been our tariffs to our goods, but they have been shipping goods here at lower costs that they've been subsidizing.

So, he's going to look at ways in which we can, you know, level those playing fields. And in fact, that way we can stimulate production here and also generate for -- through tariffs revenue of -- for our government and lower overall our deficits.

BROWN: Right. But I think, you know, when you talk to economists, they say all those -- that endeavor, what you just laid out is really kind of a long-term thing, it doesn't just happen overnight, right? And what could happen in more short-term is, of course, prices going up, you know. And you had President Trump, of course, one of his big promises was, I'm going to lower prices when you bring me into office. Are you concerned that Americans might punish your party in next year's midterm elections, if that happens?

TURNER: Well, the one thing you can't do is you can't just continue to subsidize these other economies. You have to bring about that change. And by doing so, then you stimulate economic production here. And that economic production is going to result in economic growth. And that's what he's doing, is he's bringing you about that economic --

BROWN: Right. but that takes time. A supply chain reorder -- reorganization, I mean, that can take years to bring or bring something back here in the U.S.

TURNER: It does us, but it's a slow bleed here. I mean, we're losing, right? And the goal is gain, is economic gain. And you have to begin it.

BROWN: Understandably.

TURNER: Every day that you don't make that change, you are losing. And you have to start that process of gaining.

BROWN: But do you feel a little bit nervous right now about the midterms? I mean, given the fact that we just don't know. And given the risks that are inherent in this and trying to accomplish the goal that you laid out.

TURNER: This is not an electoral game. This is an economy game, and that's what he's been doing. I think, you know, the fact that his team has been meeting, that they've been working really diligently and reviewing what other markets have been doing, what other countries have been doing, and then ways in which it needs to be massaged. I think that the plan that they're going to be putting together. And also, they've shown flexibility, the manner in which they've put some in place and pulled them back.

[10:50:00]

I think we're going to see a well thought out plan that is unveiled today and it's going to really be focused on how do we have economic gain so that our markets grow.

BROWN: All right. So, you didn't want to answer my question though about the midterms, but we will talk about the elections that we did see, right? We saw what happened in Florida. Last night in Florida, Republicans swept two special House elections and red districts, no doubt, but they did -- certainly, the margin of victory was cut in half, I believe. And then you have Wisconsin where the Democrat-backed candidate won.

And I want to look at this graphic right here. The chair of the Wisconsin Party posted this. The blue arrows show the entire state moving towards Democrat right here. That's despite Elon Musk and his affiliated groups donating some $20 million. Is this a warning sign for Republicans?

TURNER: No, I think what you have here are two really -- I mean, well, three, you know, signs that are all status quo, right? Because in -- what you had in your description is you had Democrat seats that stayed Democrat and Republican seats that stayed Republican. I think those -- the fact that those are all status --

BROWN: But looking at trends. Looking at the trends, right?

TURNER: But they stayed status quo. And I think that means that right now we have status quo and I think the country is --

BROWN: But are you saying you're not looking at the margins?

TURNER: Well, I -- you know, they're midterm, which means, you know, turnout is always lower. They're a little bit off. People are not in cycle. You know, people are busy. But if they really thought that there needed to be change, if there something was disturbing to them, they would've turned out. I think these are status quo and I think people are watching, they're paying attention.

And right now, I think they believe that everything is in -- in the right hands, and they want to see what's going to be occurring.

BROWN: But do you have concern, as a Republican, again, looking ahead to the midterms about Democrat enthusiasm and sort of the turnout and what that can -- what could -- that could pretend for the future? Because we've seen it happen historically when Trump was in office in the past.

TURNER: I don't know. I think Democrats right now are pretty disaffected. I mean, right now, I think that they're -- you know, all of the discussion is they don't even know what they stand for at this point. I mean, the march of Republicans of let's fix the economy, let's fix national security, let's make certain that we fix government, I mean, they don't even know what their to-do list is. So, they don't even have a unified message or agenda. And Republicans do. And we're going to work.

BROWN: Right. All right. So, I want to just move on. You know, we were talking about Elon Musk and whether, you know, what we saw in Wisconsin was in response to him, right? You sit on the Government Oversight and Reform Committee. You have layoffs of the federal government that have spiked, most recently at HHS, there were, I believe, about 10,000 layoffs in addition to the probationary employees and so forth.

The former FDA head said that included, quote, "most of the leaders with institutional knowledge and a deep understanding of product development and safety, no longer employed." Do you have any concerns about the brain drain in the federal government?

TURNER: Well, I mean, certainly, we have to be careful. But at the same time, we cannot continue to spend it the way that we are. These deficits are so extreme and our government is putting our economy and the future of our government, the future for our children at risk. We have to make changes.

And certainly, the number of people in government, because those positions represent spending, not just individually their salaries but the function that they do, those functions spend, right? So, you have to bring that curve in. You have to bring that curve down.

Surely, we have to look to the future to make certain that, as we do so, that the functions of government are protected. But we -- but these changes have to be made for the future of our government. BROWN: But just to follow up on that, you know, you talk about the spending that is happening and the cuts and so forth. I want to ask about Medicaid, because Republicans right now, you know, have to find 800 -- over 800 billion in cuts. And you have the CBO, which is nonpartisan, saying, look, I mean, the only way to do that is by cutting Medicaid. What are you going to do that as a Republican? Where do you stand?

TURNER: Well, the president has said no. And certainly, that's --

BROWN: But then how -- where do the cuts come from?

TURNER: The president said no, and I agree with him. Certainly, in my community, we are very dependent upon, and there are people whose lives are significantly impacted by that. And -- by that spending and this goes right to the health and the wellbeing of people in our country and in our communities.

BROWN: So, can you guarantee there will be no cuts in Medicaid?

TURNER: You know, the -- efficiencies are -- is not an issue -- is a different issue than whether or not people's benefits and their health benefits are reduced.

BROWN: So, I just want to follow up on that because when you're saying efficiency, you're saying, OK, we're going to focus on, you know, waste, fraud, and abuse. But that's just a matter of opinion, right? I mean, what -- how you view efficiency and where you're going to make those cuts.

TURNER: There should be no cuts in health benefits to individuals. The president said so. You know, last time I voted against the plan that would have resulted --

BROWN: But you'll look at efficiency in Medicaid then?

[10:55:00]

TURNER: Absolutely. We have to make certain that the cost of benefits are the most efficient possibly, but people's benefits cannot be cut. The healthcare that is provided cannot be limited and people's benefits have to be maintained.

BROWN: All right. Congressman Mike Turner, thank you so much.

TURNER: Thank you.

BROWN: We'll be right back.

(COMMERCIAL BREAK)

BROWN: Happening today, the White House's so-called Liberation Day tariff announcement. We have team coverage and reaction from U.S. trade partners as the world waits to hear what Trump has planned.

BLITZER: And we also, Pamela, have new CNN reporting this -- [11:00:00]