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World Bracing For Trump's Sweeping New Tariffs; Final Hour Of Trading Ahead Of Trump's New Tariffs; Source: Sr. Russian Official Expected To Meet With U.S. Envoy; FAA Sending "Stress Management Team" To Meet With ATC at DCA; Sources: Advisers To Present Potential TikTok Deal To Trump With Ban Just Days Away. Aired 3-3:30p ET

Aired April 02, 2025 - 15:00   ET

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

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[15:01:00]

BRIANNA KEILAR, CNN HOST: We are one hour away from President Trump's big tariff announcement, but the exact details are still unclear. How this could reshape the economy and drive up what we all pay for everyday expenses.

Plus, a fight breaks out in the air traffic control tower at Reagan National Airport. Now, the FAA is sending a stress management team to meet with controllers. We're following the latest there.

BORIS SANCHEZ, CNN HOST: And the clock ticking for TikTok. Sources tell CNN that Amazon has put in a bid to purchase the controversial app. What we know about the last-minute deal making as the deadline to find a buyer is now just days away.

We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

KEILAR: The countdown really is on. President Trump is now one hour away from his major tariffs announcement.

SANCHEZ: Very few details are known at the moment about his plan. But we do know that these tariffs are set to go into effect immediately. Let's take it to the White House now with CNN Chief National Affairs Correspondent Jeff Zeleny.

Jeff, what's the latest you're hearing from sources?

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Well, look, the Rose Garden is set for this big event that the President has really been talking about most every day since he's arrived here at the White House almost three months ago and, of course, on the campaign trail as well. Cabinet members have begun to arrive, business leaders, some union members and others.

We got a glimpse of the Rose Garden. There are flags from all 50 states, many, many American flags. And the theme is "Make America wealthy again." However, the big question, if that will actually happen, because the size and scope of this tariff plan is still coming into view. As recently as this morning, several different aides were still presenting the President with a variety of options.

Now, one of the options that is still a possibility are reciprocal tariffs that the President has so often talked about. What that would be is essentially one for one. The U.S. would charge a country a tariff the same that they impose on the U.S. or a sweeping across the board, a tariff of 20 percent on all imports or there could also be a more streamlined version.

We are getting a sense, of course, after watching so many on again, off again tariff proposals over the last couple of months, that this could be a smaller plan than previously thought. We will see where that goes. But that is one possibility here.

But the bottom line to all of this, a tariff, of course, is a tax on an imported good. So, this is going to be paid by consumers, despite the President always saying these tariffs will be paid by foreign countries. That simply is not how economists and others see it. So, the bottom line to all of this, will this administration gamble, will this pay off or not.

Many lawmakers who will be on hand here are quite nervous about this, no doubt so far in this administration. This is the first biggest proposal for his America first agenda that will offer a test for the rest of his days here as president. Boris and Brianna?

KEILAR: Jeff Zeleny, live for us at the White House. Let's talk now about how Wall Street is reacting to this. CNN's Vanessa Yurkevich is watching the markets for us.

Vanessa, what's going on?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes. Well, at last check, markets were up on just ahead of an hour away from this announcement. We see it right there. The Dow, NASDAQ, S&P, you know, up slightly, just kind of waiting to see what happens like the rest of us.

But I want to talk about what we actually do know. And guys, we actually know more about tomorrow than we do about today. Tomorrow we know that tariffs on autos, foreign imports of autos, are going to take effect 25 percent. And then in May, there's going to be a tariff on car parts.

And we're hearing from analysts, one in particular, Dan Ives, who says that he believes that this is going to add $100 billion in costs to automakers.

[15:05:04]

And that it will be passed down to the consumer and it will erode demand on day one of these tariffs.

Now, the United Auto Workers union, which represents workers who build these cars, says the companies can afford it. But what we don't know about today is what is coming. What is the percentage rate of these tariffs on which countries, are they sector specific and, ultimately, what products are going to be hit. That is key for American consumers and businesses.

And what I'm hearing from Wells Fargo and analysts there is that currently businesses, suppliers and vendors are talking behind the scenes, trying to figure out who is going to eat the cost of whatever tariff may come. On one hand, you have the supplier that could eat the entire cost of a tariff.

I spoke to the owner of a grocery store chain who said that his supplier of salmon in Canada is going to absorb that higher cost, that tariff, just so that they can keep market share. Then, you have another scenario where it's a split. The supplier takes half, the business takes half.

But ultimately, guys, the third scenario is what most economists believe is going to happen, that the supplier, the business and the consumer will ultimately pay some price of this tariff increase. That's ultimately what economists think is going to be happening at the end of the day, guys.

SANCHEZ: Vanessa Yurkevich, thanks so much for bringing us that update on Wall Street.

Let's discuss with Aaron Klein. He's a former Treasury Department deputy assistant secretary under President Obama, now a senior fellow at the Brookings Institution.

Aaron, thanks so much for being with us, as always.

We're less than an hour away. What are you anticipating we'll see?

AARON KLEIN, FORMER TREASURY DEPARTMENT DEPUTY ASSISTANT SECRETARY: Well, you know, first of all, we don't know. And it seems as if this event is designed to get more eyes on Donald Trump than it is to provide certainty to American businesses and consumers about what to expect, what the future is going to be, what prices. It seems like what we're trying to maximize are ratings for this 4 PM thing, as opposed to the economy for every American.

KEILAR: Yes. Interesting point. And you have - as you're looking towards this announcement, which we are going to be watching, to your point, what are the sort of unknowns that you're looking for answers to?

KLEIN: Yes, well, first of all, size, magnitude, right? How big are these tariffs going to be? Second, scope. Are they going to cover everything or are they going to cover certain sectors and different areas? Third, countries. Are we continuing to target our allies, which, you know, Canada, Europe, Mexico, England, which really - Japan, Korea, right - which really, to me, is deeply confusing, as opposed to countries like China, with Temu (ph) and small exemptions that are more legitimately manipulating certain rules of the road.

And, you know, lastly, timing. When are these things going to take effect? He says they're going to take effect immediately, but the history of Trump is saying one thing, doing another, creating more uncertainty so that there'll be more eyes on him in the future. SANCHEZ: Of the three scenarios that Jeff pointed to, I imagine you would say that broad 20 percent tariffs on everybody would probably be most disruptive. When you get to the actual truly reciprocal tariffs, are there some - you mentioned some examples on Chinese companies - are there some that would help boost manufacturing in the United States and provide some revenue without harming American consumers?

KLEIN: Well, look, there are very few free lunches in this situation. There are smart tariffs that could be implemented to make rules of trade be enforced. Often what we've seen for decades are places in China and other places that manipulated their currency or took advantage of loopholes like Temu (ph) is doing with this little, small manufacturing under $800, one by one import.

And those are kind of gaming the system, and putting the tariffs in place there do make sense. Does it make everybody better off, as an economist would like to say, Pareto improving? Probably not. Nobody who enjoys that cheaper good from China or that little thing that you get in the mail from Temu (ph) that feels super cheap, right?

But writ large, it would help manufacturing and fundamentally create a level playing field. And when he talks about reciprocal tariffs, what's enticing at first is the idea of fairness, that there should be equality in this situation. But when he starts talking about something that's reciprocal against a foreign sales tax, he stops making economic logic and starts just being punitive, which really disrupts the economy, disrupts markets and will cost everybody a lot more money.

KEILAR: So, we know that Ford has seen a surge of sales ahead of time, because one of the things we do know is that these auto and auto parts tariffs are going into effect, right? But I will tell you that if you go online and try to figure out what people are thinking they might need to buy in order to beat these tariffs, your head will spin.

KLEIN: Yes.

KEILAR: It's like, is it canned beans, is it dried beans, is it beef, it's like - I'll tell you, it's all the things, right? So, what are you looking at in terms of consumer products that people might actually be going, oh, my goodness?

KLEIN: Yes. So, I mean, you know, it's very unclear, and this is part of the problem with the uncertainty that he's done.

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The second point is, it's not just as direct. The economy is complicated. So, you talk about like taxing on car parts. You think, okay, well, that affects me if I'm buying a new car.

Well, it affects everybody who has car insurance, because what does car insurance cover? The cost of an accident. What is the cost of an accident? The cost of replacement parts. If you pull up - look under the hood of inflation, what you'll find is auto insurance has been one of the higher rising prices that's been going on. So, everybody's car insurance could rise, even if you don't buy the parts. This is what's so problematic about these broad-based tariffs, right, because they affect the economy in ways that folks don't fully understand. So, it's very difficult for consumers to know, what should I stock up on ahead of time. I have no idea.

SANCHEZ: I also have a hard time, Aaron, totally understanding some of the objectives that have been presented with these tariffs, because they contradict each other, right? We're doing it to raise revenue, while at the same time boosting American manufacturing at home, right? So, in other words, there's a contradiction there between bringing in money from overseas that people are paying to import, while also making it more difficult to sell those goods because American manufacturing is going to be boosted, while at the same time suggesting that this is all just a negotiation tactic to help us get better deals from abroad.

How do you make sense of all of that? Does it make sense?

KLEIN: So, at a certain level, it doesn't make sense, right? As you point out, the trade agreements he's upset about with Canada and Mexico are the ones he himself negotiated in his first administration. So, if he thinks we're getting ripped off now, the person that ripped us off is him. Second, he talks about lowering our trade deficit. At the same time, he belittles countries that send international tourists here.

When I served on the President's Council to promote travel and tourism, I learned that foreign tourists visiting America are considered an export. Did you know that we export Disney World and Las Vegas when people come in?

Now, you see Canadian air travel to Las Vegas down 70 percent for the summer. Number one country that visits Las Vegas, 1.3 million Canadians come a year, down 70 percent, right? That can - that's a real impact there. It's going to expand our trade deficit. And that's just by telling and insulting countries, let alone with the tariffs.

What is the common theme here is this common theme, which, you know, is kind of like an everlasting proof in Trump world that America's going to get ripped off and only Donald Trump can save us. And whatever he does is good and saves us.

And so in that way, he continues to play to our fears and this belief that we're getting a bad deal in trade, which has some real validity. But his solutions don't address the very problems he's identified.

KEILAR: Really interesting points.

Aaron Klein, thank you so much. As always, appreciate it.

And still to come, a senior Russian official due here in Washington as early as today. It would be the first visit of its kind since the war in Ukraine began. What this could mean for a U.S.-brokered peace deal.

SANCHEZ: And an interesting moment with Indiana Republican senator Jim Banks telling a federal health worker who lost his job because of DOGE cuts, quote, you probably deserved it. We're going to be joined by that laid off worker.

That and much more coming up on CNN NEWS CENTRAL.

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KEILAR: One of Russia's top negotiators is here in Washington, and sources are telling CNN the senior Russian official is set to meet with his U.S. counterpart, Special Envoy Steve Witkoff, as part of ongoing talks to end Russia's war in Ukraine. It's a visit that's taking place during a pivotal moment on the battlefield.

Just yesterday, Russian President Vladimir Putin called up a huge conscription of roughly 160,000 men.

SANCHEZ: CNN Chief National Security Analyst Jim Sciutto joins us now in the studio.

Jim, let's talk about this Russian official in the United States. It's interesting, the State Department had to temporarily lift sanctions so he could come here?

JIM SCIUTTO, CNN ANCHOR AND CHIEF NATIONAL SECURITY ANALYST: Yes. He's one of many Russian officials under sanctions, so can't come here legally. And this is significant in its own right, because it's the first Russian official to visit Washington, not just during the Trump administration, but going back to Biden administration, because they'd all been banned since the full-scale invasion in 2022. But he himself is interesting as well, because you might say that he's the mirror image of, say, Steve Witkoff, right?

He's a businessman. He runs Russia's sovereign wealth fund. He has a history in the United States. He went to Stanford. He worked for Goldman Sachs. He worked for McKinsey. So, he has - he knows the States. His English is very good. He worked for American companies doing American deals. You could imagine this is the kind of Russian senior official that a President Trump might say, I can do business with him, or that Steve Witkoff across the table can say, we've done a lot of deals before, granted not to end the largest land war in Europe since World War II, but we've done deals before, maybe we could come to some sort of agreement.

So, he's an interesting candidate at this point to try to get some forward progress on talks, let's be frank, are not going anywhere, largely because Russia is not abiding by any of the details of the agreement and, in fact, is asking for more.

KEILAR: Witkoff recently went on - Tucker Carlson was talking to him, and he lacked some rudimentary knowledge of Ukrainian geography.

SCIUTTO: Yes.

KEILAR: And he also parroted some Russian talking points. SCIUTTO: Hundred percent.

KEILAR: What is - he also since has been kind of included in this Signal gate situation.

SCIUTTO: Yes.

KEILAR: What is the expectation of his role in this, and what America can get out of this?

SCIUTTO: Listen, that Tucker Carlson interview with Witkoff raised alarm, certainly in Ukraine and Europe as well. Because to your point, he wasn't just tiptoeing around Russian talking points, he was straight up repeating them, right?

[15:20:03]

You know, in effect saying that Russia was goaded into war in Ukraine by Ukraine's NATO aspirations. And, yes, he couldn't name the eastern provinces that form - you know, part of the dispute as to how this war might be settled, right? What portions of that territory might be ceded to Russia, in effect, to bring about an end to the war. So, that's certainly a problem for some of those involved in these negotiations.

But we should also state quite clearly, Ukraine has agreed to President Trump's ceasefire, both a broader one and then this more limited maritime ceasefire. It is Russia that has been not just dragging its feet, but actually asking for more, adding new conditions. So, when you hear from the White House, well, the President's frustrated with both sides, only one side has agreed to the President's terms at this point and that is Ukraine.

SANCHEZ: Not only asking for more concessions, the Kremlin is also asking for more manpower.

SCIUTTO: Yes.

SANCHEZ: Tell us about this large-scale conscription.

SCIUTTO: So, if you're - if you believe that Russia is on board with ending this war, you might be surprised that they're just mobilizing more forces in this country to at least allow the possibility of keeping the war going.

There's a lot of talk about how Ukraine has a manpower issue, which it does. It's a smaller country. It's lost many hundreds of thousands of troops, both killed and injured. They've got a problem, but so does Russia. And he has not - he's got quite - he hasn't quite done a national draft, a national mobilization, which even Putin knows would be difficult to sell to the Russian people, but this is getting pretty close to that.

Another 160,000 soldiers is a big deal, not to mention the North Koreans that are coming to Europe as well to fight in Putin's war in Europe. SANCHEZ: Jim Sciutto, thank you so much for the update.

SCIUTTO: Thanks a lot.

SANCHEZ: Yes. Still to come, sources tell CNN that Amazon has put in a last-minute bid to purchase TikTok. It says President Trump is weighing options for a deal. The app's owner has until Saturday to find a buyer.

And international backlash to Trump's tariffs could hit American farmers especially hard. How the administration might be planning to bail them out again.

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[15:26:47]

SANCHEZ: New today, the Federal Aviation Administration says it is sending a stress management team to meet with air traffic controllers at Reagan National Airport. This move comes after a brawl broke out in the airport's control tower last week, leading to the arrest of a 39- year-old controller. In addition to sending in a stress management team, the FAA says it's also reviewing controllers' staffing at the airport and increasing the number of operational supervisors.

KEILAR: DCA, of course, has seen a string of incidents recently, and that includes the deadly mid-air crash between an American Airlines passenger jet and a Black Hawk helicopter that killed 67 people back in January. You may recall that at the time of the collision, one controller was handling two positions, although we learned that was not altogether unusual for this tower.

On Friday, there was another close call after an apparent breakdown in communications led to a Delta plane and an Air Force jet coming within seconds of each other.

Today, advisors are expected to present the President with options for potential investors that could acquire TikTok. The app's owner, ByteDance, has until Saturday to buy - pardon me, to find a buyer and divest from its U.S. operations or be banned for American users again.

SANCHEZ: Meantime, CNN has also learned that Amazon has thrown its hat in the ring in a last-minute bid to purchase TikTok. CNN's Kayla Tausche joins us now. Kayla, what more are you learning about today's meeting?

KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, we know that Vice President J.D. Vance, who's been running this process to find an alternative option for TikTok, is going to be presenting President Trump with a menu of options, different proposals that he sees as some very viable, some less viable, for how TikTok can continue operating in this country.

And we've learned that the leading contender among these proposals is a group of companies, venture capital firms, private equity firms and even tech giant Oracle, that would essentially individually invest in TikTok to offset the Chinese ownership from the parent company. Some of those investors, Andreessen Horowitz, who's founder Marc Andreessen, very close to Elon Musk, also a vocal Trump supporter, and the Blackstone Group, who's CEO and founder, Stephen Schwarzman, also a longtime Trump ally, major Republican donor.

So, a lot of these are very well-known entities to Trump and Vance, and they believe that having this infusion of capital offsetting that Chinese ownership, and what's frankly being described as a fairly complex transaction, is going to be the one that wins the day. And we know that the Vance camp is confident that President Trump will sign off, and other interests that's been registered from the likes of Amazon, Microsoft to acquire the whole of TikTok are not - seen more or less as non-starters here.

KEILAR: So, if Trump, you know, agrees to a Vance plan, they settle on a plan, it's then - is it a done deal then?

TAUSCHE: No, the wild card is President Xi Jinping in China, who has been a roadblock to the deal in the past. We know in 2020 that there were very high stakes negotiations between the U.S. and China over what a potential deal would look like, whether China would allow the valuable algorithm to be sold with TikTok's U.S. operations, whether the U.S. would even find that passable from a national security standpoint.

And in talking to advisors and people who are involved in this process, they believe that this type of structure is one that potentially could get President Xi on board.

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