Return to Transcripts main page

CNN News Central

Hamas Military Wing Claims Contact Lost With Militants Holding Last Living American Hostage; E.U. Ready To Impose Tit-For-Tat Tariffs On U.S. If Talks Fail; Trump: Xi In Southeast Asia To Figure Out How To "Screw" The U.S.; Boeing Shares Fall On Report China Has Halted Its Deliveries As Part Of Trade War; Trump Threatens Harvard's Tax Exempt Status After Freezing Funds; Suspect In Arson Of PA Governor Home Faced Mental, Legal Turmoil. Aired 1:30-2p ET

Aired April 15, 2025 - 13:30   ET

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

[13:30:00]

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Gilboa was actually released in the latest ceasefire agreement, and she later explained through her family that she was made to fake her own death and pose for these staged images that Hamas then proceeded to release.

We have reached out to the Israeli military as well as the hostages and family forum for comment. They have yet to provide any kind of response to this claim by Hamas.

Certainly, this injecting a lot of uncertainty. And also, as Israeli officials have previously said, they believe that these things are meant to kind of bring up the pressure on the Israeli public. They have talked about this as psychological warfare in the past.

In this instance, we simply do not know whether this latest claim by the al-Qassam Brigades is true or not. They do say in this statement that they are, quote, "still trying to reach the militants who have been holding Edan Alexander," an Israeli soldier with American citizenship, hostage.

JESSICA DEAN, CNN HOST: All right. Jeremy Diamond, with that breaking news for us, thank you so much for that.

Boris?

BORIS SANCHEZ, CNN HOST: Today, Europe's retaliation against the United States for Trump's tariffs is taking shape. The E.U. releasing a list of 400 U.S. goods they say they will hike tariffs on if trade talks fail.

U.S.-made toilet paper, cigars and eye makeup, all on the line as uncertainty hangs over President Trump's trade wars.

And there are also new developments in the president's standoff with China. Chinese leader, Xi Jinping, meeting with officials in Malaysia just one day after his stop in Vietnam to shore up regional trade partnerships. Trump calling Xi's visit like this an attempt to, quote, "screw" the U.S. And Boeing shares down after a report that China's halted delivery of

all its jets to airlines in the country as part of this trade war.

Joining us now is Justin Wolfers. He's an economics professor at the University of Michigan.

Justin, great to see you as always.

Let's start with Europe. It's 27 countries threatening tariffs on 400 products if these talks fail, including makeup and toilet paper. Why do you think they're going after these specific goods?

JUSTIN WOLFERS, ECONOMICS PROFESSOR, UNIVERSITY OF MICHIGAN: I mean, what you -- you typically do in this sort of situation is you look for the most politically painful cuts.

Because look, the truth is putting tariffs on European consumers hurts Europeans. It also hurts the American producers. And so they're looking to extract maximum pain for American producers.

We see this more clearly. In fact with the Chinese retaliation. They're no longer going to export rare earth metals to us. It's a very small part of their economy, but an absolutely critical one for the United States for many of our technology exports, for cars, for military production as well.

SANCHEZ: I want to dig into that with you in a moment. But specifically on the talks between E.U. countries and the United States, what are you going to be watching for to give you an indication of how these negotiations are shaping up?

WOLFERS: Look, we've already heard the first calls from the Europeans. They are -- they're trying to prep for meetings with Trump, but they have literally no indication of what it is that the White House wants. That makes things difficult.

Look, where we were three weeks ago was that basically Europe had very, very low tariffs on most things American. And America had very, very low tariffs on most things European. And that was a pretty healthy state of affairs.

And there were a few exceptions, because farmers in both countries are politically powerful. But mostly things are in a good, good place.

If we can get back to that situation of three weeks ago and President Trump can march out to the Rose Garden and declare victory, that would be fabulous.

What I'm more worried about is he makes simply unreasonable claims. There were -- there's a moment last week in which he thought it important to ask for reparations from Europe, or that perhaps they should be paying the U.S. taxpayer directly for access to markets.

Look, this stuff is not only not credible, it's offensive. And the more you offend the other side in a negotiation, in fact, the harder you make it for them to come to the table with you. SANCHEZ: So you we're talking about China a moment ago after Beijing

suspended delivery of these critical U.S. resources, including those rare earth minerals.

Today, Bloomberg is reporting that China has ordered its airlines to not take any further Boeing deliveries. Notably, Boeing is the United States largest exporter.

I wonder what you think the implications are here and how many more levers does Xi Jinping have to pull that would cause pain for U.S. producers and consumers?

WOLFERS: Well, look, this is a pretty powerful lever, isn't it? The rare earth minerals really are critical to so much of what we do.

There are some companies that have reasonable supplies to get them through a few months. There are some that have no stockpiles. And so they're pretty much going to have to grind to a halt awfully soon, maybe even tomorrow.

[13:35:04]

Look, this is really a statement about how closely integrated our economies are. It's -- look, it's impossible for Americans to make sophisticated computers without rare earth minerals that the Chinese have.

It's impossible for the Chinese to make highly sophisticated computers without the engineering skill and talent that Americans bring to the table.

And what we're seeing is, you know, you're already seeing a huge breakdown. If President Trump puts a 145 percent tariff on China, which he has, that's already largely unmoored us from their economy.

And to the extent they're retaliating, these two economies are being asked to separate I fear much too quickly. It's -- you can't change an economy on a dime.

And, you know, it's its notable that some of the -- you know, just last week, President Trump had put a 145 percent tariff on these rare earth minerals.

And the Chinese countered by saying 145 percent, let's make it infinity percent. You can't have them. These tariffs are hurting both sides.

SANCHEZ: Yes. It's tough to imagine where this all leads.

Justin Wolfers, always appreciate the expertise. Thanks for joining us.

WOLFERS: A pleasure, Boris.

SANCHEZ: Next, the standoff between the Trump administration and Harvard University is escalating. The president's latest threat, when we come back.

(COMMERCIAL BREAK)

[13:40:50]

DEAN: Turning up the heat. President Trump now threatening Harvard University's tax exempt status, suggesting it be taxed as a, quote, "political entity."

Now, this Truth Social post follows the administration's decision Monday to freeze more than $2 billion in federal funding after the nation's oldest university rejected demands to change its policies.

The White House, pushing Harvard to make significant changes, including ending it's DEI programs, banning masks at campus protests and giving, quote, "full cooperation" to immigration officials, among other things.

We're joined now by Ryan Enos. He's a professor of government at Harvard University. He's also part of a lawsuit filed by Harvard professors fighting these policy demands.

And, Ryan, I want to get to that in just a second. But -- but first, we just heard from the White House Press Secretary Karoline Leavitt on this, and I want to play what she said and then get your reaction to what she's saying.

Here's what she said.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The president made it clear to Harvard, follow federal law, no longer break title six, which was passed by Congress to ensure no student can be discriminated against on the basis of race and you will receive federal funding.

Unfortunately, Harvard has not taken the president or the administrations demands seriously. All the president is asking, don't break federal law, and then you can have your federal funding.

I think the president is also begging a good question. More than $2 billion out the door to Harvard, when they have a more than $50 billion endowment. Why are the American taxpayers subsidizing a university that has billions of dollars in the bank already?

And we certainly should not be funding a place where such grave anti- Semitism exists.

(END VIDEO CLIP)

DEAN: Ryan, I just want to get your reaction to what she just said.

RYAN ENOS, PROFESSOR OF GOVERNMENT, HARVARD UNIVERSITY: I would say two things. First of all, I don't think that any honest person believes that Donald Trump cares about anti-Semitism. This is a guy who dines with white supremacists. He has people in his

close circle who give Nazi salutes. And he has coddled white supremacists and Nazis for years.

So this is not about anti-Semitism. That's a pretext for an authoritarian attack on universities, just like Donald Trump has attacked the press and other pillars of a free society.

It's also the case that this $2 billion that they're talking about, that goes to Harvard, is funding that goes towards things like child's cancer research at the Boston Children's Hospital.

And I would challenge Donald Trump to explain to the American people why he thinks he can take money away from children's hospitals. That's what's at issue here.

DEAN: And back in early March, you coauthored an op ed in the "Harvard Crimson," and you wrote in part, that you believe democracy is in greater peril today than at any time in modern U.S. history.

And you went on to say, in the face of this assault, Harvard's silence has been deafening.

Now, since then, Harvard has pushed back against the Trump administration, which is kind of where we find ourselves now with this $2 billion in federal funding that they're revoking.

What -- how would you assess the schools actions today at this point?

ENOS: The school is doing the right thing. It's living up to its values and it's living up to its responsibility as a leader in American society.

And that it speaks to the problem, which we raised in that op-ed, which is that American democracy is under attack here. It's not just higher education. It's certainly not just Harvard.

Donald Trump is doing the same thing that authoritarians in places like Russia and Hungary and Venezuela have done when they've tried to dismantle democracy.

They start with universities, they start with law firms, they start with the press, and then they move on to other places. And Harvard and other leading institutions have a responsibility to speak up and say no to those things.

And I think so many of us were thrilled yesterday when Harvard finally did the right thing and said, no, we are going to say no to these un- American and unconstitutional attacks on our civil society.

DEAN: And as people are watching this to -- perhaps an American out there who is struggling with high prices and to get through a day, the line that Karoline Leavitt said in there about the billions of dollars in the endowment for the university and the $2 billion in funding.

[13:45:03] I hear, I hear what you're saying. These -- these monies go to different things.

But what do you say to those people? Why should they care? They don't attend Harvard. Their child may not attend Harvard. Why should they care about what's happening on your campus and to your university?

ENOS: Yes. You know, I get that. I'm not asking anybody to feel sorry for Harvard. What we are talking about here is an attack on civil society.

And it's not going to stop with Harvard. It didn't stop with Harvard. He's moved on to other institutions, other universities. He's moved on to other -- he's moved on to K-through-12 schools.

He's attacked the press. He's attacked lawyers. He's attacking anybody that disagrees with him. And that's what authoritarians do. They attack anybody that pushes back.

So Harvard's responsibility, as the oldest and the richest university in the United States, the richest university in the world, is to push back on these things.

It's not, ultimately, about $2 billion for Harvard. It's about whether we have free speech in this country. It's about whether people are able to study what they want, to criticize their government, and do all the things that make America a free country.

That is what Donald Trump is attacking. And you can care less about Harvard. I understand why most people would. But in the end, it's a lot bigger than Harvard. And Harvard is putting up a fight now that all Americans should get behind.

DEAN: And we're going to see where that fight leads.

Ryan Enos, thank you so much for your time. We really appreciate it.

ENOS: Thank you.

DEAN: And right after this, forced to flee in the middle of the night. Investigators trying to figure out why the Pennsylvania governor's mansion was set on fire and also how this was allowed to happen.

(COMMERCIAL BREAK)

[13:51:03]

DEAN: Now to the latest on the man accused of throwing homemade bombs into the home of Pennsylvania's governor.

Cody Balmer was an auto mechanic with a troubled personal history, according to police records, including allegations he assaulted his wife and young children during an attempt on his life.

His mother told CBS News her son, quote, "was mentally ill, went off his meds and this is what happened." Adding, she tried to get police to help.

CNN's Danny Freeman has more on the investigation.

(BEGIN VIDEOTAPE)

DANNY FREEMAN, CNN CORRESPONDENT: Amazingly, at this point, we actually have an abundance of information about how police believe that Cody Balmer, the 38-year-old man and main suspect here, broke into the governor's mansion and set fire to the residence.

Part of it is because there was so much surveillance video of Balmer committing these acts. But the big unknown here at this time still comes down to motive.

But let's discuss what we do know, because we did learn a lot on Monday.

The first thing is that Balmer was officially arraigned on Monday evening for setting fire to the governor's mansion. As he went into the small judges office, he actually stuck his tongue out at the cameras.

That was as reporters peppered him with questions including, why do you hate Governor Josh Shapiro so much? He did not answer any of those questions.

Inside of the courtroom. The judge ultimately denied Balmer bail. While the judge said that she appreciated that Balmer turned himself in to authorities, she believed prison was still appropriate for the safety of himself and the community.

And notably, inside of that courtroom, when Balmer was asked if he had a history of mental illness, which has been reported, Balmer responded, saying, "That's the rumor. But no, ma'am."

Remember, he's facing these charges of attempted homicide, terrorism, aggravated arson and aggravated assault.

But when it comes to the fire itself, we know a pretty solid picture of what happened on Saturday night into early Sunday morning. We know that Balmer brought at least two makeshift Molotov cocktails with him as he jumped over the fence. They were beer bottles filled with gasoline.

Before he jumped over the fence, he was able to evade security. And then, once he got over the fence, he continued to evade state troopers on the premises before ultimately setting fire to the mansion.

He was said to, in court documents, if he encountered Governor Shapiro, he was planning on beating him with a hammer.

But again, motive still the big question here. What brought him, aside from hatred, to the governor's mansion overnight over this past weekend?

Take a listen to what the Dauphin County district attorney told CNN last night about the motive.

(BEGIN VIDEO CLIP)

FRAN CHARDO, DAUPHIN COUNTY DISTRICT ATTORNEY: We're getting a picture of what his intentions were and that they were geared towards -- towards the governor.

But we're looking at -- because we want to know why he did it, and we're looking at the possibility that it was geared towards the governors, well, his religion --

JIM SCIUTTO, CNN ANCHOR: Yes.

CHARDO: -- and his -- his views on -- on Israel.

(END VIDEO CLIP)

FREEMAN: Now, I should note, a source familiar with the investigation at this point says that there is no indication that anti-Semitism was, in fact, the reason that brought Balmer out to the residence behind us.

But again, this investigation still very much ongoing. As is an investigation into just the massive security breach that occurred here over the weekend. Balmer's next court appearance is next Wednesday.

Danny Freeman, CNN, Harrisburg, Pennsylvania.

(END VIDEOTAPE)

SANCHEZ: Our thanks to Danny Freeman for that report.

Now to some of the other headlines we're watching this hour.

Two new studies found that babies and children are being exposed to brain-harming chemicals while they sleep.

Researchers say that mattresses and bedding are key sources of the exposure because they may contain flame retardants and other dangerous chemicals that are used in hundreds of consumer products.

Children are especially vulnerable to these toxins because their brains and bodies are still developing.

Now, the study did not include any brand names, but the researchers tell CNN that they were well-known lower-cost mattresses found at leading retail stores.

Also, we have new details on that helicopter tour company involved in the deadly Hudson River crash last week.

[13:55:02]

The FAA says it's now suspended the company's air carrier certificate after learning it had fired an employee who voluntarily agreed to halt flights during the investigation. The FAA says it suspects the firing was retaliation for that safety decision.

Senator Chuck Schumer of New York is urging federal officials to revoke the company's operating certificate following the crash, which killed all six people on board, including three children.

And we'll close out this hour with some heartwarming video. It shows elephants at the San Diego Zoo forming what's called an alert circle to protect their young during yesterday's 5.2 magnitude earthquake.

Zoo officials say the animals have the ability to feel sound through their feet. And you can see them there, the park's older African elephants instinctively moved quickly to encircle and shield the two seven-year-old calves from any possible danger.

If it were up to our executive producer, Michelle, that story would have led all hours today. It is adorable, after all.

When we come back, attorneys for the man mistakenly deported to El Salvador are back in court after President Trump and El Salvador's leader say they cannot return him to the U.S.

Stay with CNN NEWS CENTRAL. We're back in just a moment.

(COMMERCIAL BREAK)