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Trump Tariffs on Canada, Mexico, and China Go on Effect; Trump Pauses Military Aid to Ukraine After Zelenskyy Clash; Russia Reacts with Glee to Heated Trump-Zelenskyy Exchange; Pope Francis Suffers Setback with New Breathing Problems; Trump Slaps 25 percent Tariffs on Canada & Mexico, 20 percent on China; Scientists Use Jumping Mice to Test Rigors of Space Travel. Aired 12-12:45a ET

Aired March 04, 2025 - 00:00   ET

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

[00:00:39]

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: U.S. assistance to Ukraine on hold as the Trump-Zelenskyy clash escalates. Ahead here on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Now maybe somebody doesn't want to make a deal. And if somebody doesn't want to make a deal, I think that person won't be around very long.

(END VIDEO CLIP)

VAUSE: Sounds like somebody is still angry with someone else and is ramping up the pressure for a ceasefire. Even the Canadians are now angry.

(BEGIN VIDEO CLIP)

JUSTIN TRUDEAU, CANADIAN PRIME MINISTER: And we will have a strong, unequivocal and proportional response.

(END VIDEO CLIP)

VAUSE: Announcing new tariffs on U.S. imports. Retaliation for Trump tariffs, which just went into effect. From (INAUDIBLE) to serious setback.

(BEGIN VIDEO CLIP)

CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: It's been a rollercoaster ride following Pope Francis's health crisis.

(END VIDEO CLIP)

VAUSE: With two episodes of acute respiratory failure Monday as the Holy Father battles double pneumonia.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause. VAUSE: It's just past midnight here on the U.S. East Coast, where it's

shaping up to be one of the most significant days so far of Donald Trump's second term. 25 percent tariffs against Canada and Mexico go into effect this hour, along with another 10 percent on Chinese imports. The president confirmed the new tariffs would go ahead on the same day he suspended U.S. assistance for Ukraine, pulling the plug on $65 billion approved by Congress last year. All of this expected to feature heavily in Donald Trump's address to Congress later Tuesday.

The tariffs on Canadian and Mexican imports are intended as payback, according to the president. Both countries, he says, have been taking advantage of the U.S. and have been harming the U.S. economy. And tariffs on Chinese imports will increase from the current 10 percent to 20 percent. The president accusing Beijing of failing to curb the flow of fentanyl and illegal drugs into the United States.

The announcement sent financial markets tumbling. The Dow lost 650 points for the day. The Nasdaq was down more than 2.5 percent. The S&P posted its biggest one-day decline of the year. And now comes retaliation. Canada imposing a 25 percent tariff on $30 billion in American goods and plans for more in the next few weeks.

CNN's Paula Newton begins our coverage from Ottawa.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: Canada says it is ready to retaliate against those tariffs, and says that they will be reciprocal and proportional. $155 billion worth. But at issue now is what Canada says is an effort at the border to do what the American president wants, and that is to stem the curve of fentanyl, but also migrants. But what's really happening here is Donald Trump has decided that he has no use for the Canadian economy, and the Canadian government has gotten that message loud and clear.

The government here is deciding that they need to stand up to the American president. They are warning Canadians that this will hurt the Canadian economy and likely pull it into a recession. But they say they are ready to make deals with other countries, look for other trading partners. But most of all, try and convince Americans, and clearly American consumers, American Republican lawmakers, that this is a relationship that should not be broken and that, in fact, Americans gain as much as Canadians from continuing with this trade relationship.

At this point in time, though, Canadian officials do not feel that there is any way to get out of at least an initial tariff war happening, and that will happen on Tuesday.

Paula Newton, CNN, Ottawa.

(END VIDEOTAPE)

VAUSE: Widespread criticism after Donald Trump paused military aid for Ukraine. Officials and analysts are warning of the dire consequences for the country's ability to keep up the fight against Russia. One European official called the move petty and wrong. The White House says the decision follows the U.S. president's heated clash with Ukrainian President Volodymyr Zelenskyy in the Oval Office Friday.

Now, officials say Mr. Trump and his aides want an acknowledgment from Zelenskyy, perhaps even a public apology, before moving forward with a rare earth minerals deal or talks about continuing any kind of assistance. One U.S. official says it could take weeks for the impact of the pause to be felt by Ukrainian fighters on the battlefield, but once the current military stockpile begins running low, the effects will be severe.

Hours before the pause was announced, Zelenskyy said he is counting on the U.S. support to end the war, and again press for security guarantees.

[00:05:03]

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): The lack of security guarantees for Ukraine 11 years ago allowed Russia to begin with the occupation of Crimea and the war in Donbas. Later, the absence of security guarantees enabled Russia to launch a full scale invasion. And now, due to the lack of clear security guarantees, Russia is keeping this war ongoing. The whole world sees this and the whole world acknowledges it.

(END VIDEO CLIP)

VAUSE: CNN's Oren Liebermann following developments from Washington.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: After that disastrous meeting in the White House between President Donald Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy, Trump has ordered the U.S. to pause weapons shipments and the shipments of military equipment to Ukraine. Shipments that were already in motion by air, by sea and by land those have all been frozen for now.

The White House has made clear how upset they were with Zelenskyy, first for not showing enough gratitude, and second, they feel he's not a partner for peace and not willing to negotiate. This then is the White House consequence of that, freezing military aid to Ukraine.

Now, there had been several weeks of supplies that were still on their way. This comes from military shipments and packages that were announced under the Biden administration, which announced about $3 billion in military aid to Ukraine in December and January. Some of that hadn't yet been sent and was still on its way. Plans for shipments were ongoing and were expected to continue over the course of the next several weeks.

In fact, on Sunday, a U.S. Defense official told us that rockets, artillery, all of that was still supposed to be going in. That now is frozen. A White House official said it can continue to move if Zelenskyy shows a willingness to enter negotiations, if the White House essentially views him as a partner for peace.

The question, of course, how quickly will this affect Ukraine on the frontlines, especially as Russia's military has launched large bombardments over the course of the past several days? Analysts and officials with whom CNN has spoken say this could be felt in several weeks, perhaps even in two to four months. Part of that is because Ukraine continues to get military supplies from European countries, and that will help. But about half of what's been sent to Ukraine has come from the U.S., and that impact will eventually be felt on the frontlines. One analyst said it will be crippling.

Oren Liebermann, CNN, in Washington.

(END VIDEOTAPE)

VAUSE: Joining us now, Matthew Schmidt, associate professor of national security at the University of New Haven and a former professor of strategic and operational planning at the U.S. Army Command and General Staff College.

It's good to see you, Matthew. Thanks for being with us.

MATTHEW SCHMIDT, ASSOCIATE PROFESSOR OF NATIONAL SECURITY, UNIVERSITY OF NEW HAVEN: Good to be here, John.

VAUSE: OK. So this decision by President Trump to suspend all U.S. assistance for Ukraine, it's shocking, but it is not surprising. Does that now change the calculation for Europe as well as for Ukraine? And in what way if so? And is there the sound of champagne corks popping and party music right now coming from the Kremlin?

SCHMIDT: Yes, I think the Kremlin is getting pretty much everything that they want. What we really see here is that the United States is only negotiating with Europe. And it's strong arming Ukraine, which is a strange turn of events. So, you know, that's the situation we're in. I think that Zelenskyy can still walk this back. But it's an open question if he's going to have to have elections in order to get the United States, you know, to continue to give some kind of aid and put him in a better position for a ceasefire.

VAUSE: Yes, well, the British prime minister on Monday, he again talked about European allies coming up with their own plan to end the war, as well as this coalition of the willing, European countries willing to commit troops in some kind of peacekeeping role. Here's Sir Keir.

(BEGIN VIDEO CLIP)

KEIR STARMER, BRITISH PRIME MINISTER: Britain will play a leading role with if necessary and together with others, boots on the ground and planes in the air.

Mr. Speaker, it is right that Europe do the heavy lifting to support peace on our continent. But to succeed, this effort must also have strong U.S. backing.

(END VIDEO CLIP)

VAUSE: And that, sir, is the rub. If the U.S. president is willing to pull the plug on $65 billion approved by Congress for Ukraine after a public argument with Zelenskyy, what are the chances he will accept a European ceasefire plan which benefits Ukraine?

SCHMIDT: Not a whole lot. At least not a plan that requires a large amount of U.S. assistance. The thing to keep in mind here is that it's U.S. airlift capability that Europe doesn't have in any native sense. And so if they don't have that, they don't have a rapid response option that's credible against Russia when they put together any kind of peacekeeping force, and they're going to need tens of thousands in order to be credible. And I don't know where Europe is going to come up with that number.

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VAUSE: Well, the French prime minister, among others, he's spoken about the immediate impact Donald Trump's actions will have on Ukraine, as well as the long term consequences. Here he is.

(BEGIN VIDEO CLIP)

FRANCOIS BAYROU, FRENCH PRIME MINISTER (through translator): There are two victims in this scene. The first potential victim is the security of Ukraine, which is fighting for its survival and for nation's right at the price of the lives of tens of thousands of our children. The second victim is a certain idea of the alliance that we, countries of freedom, had with and around the United States.

(END VIDEO CLIP)

VAUSE: Is the only thing keeping the old Trans-Atlantic alliances alive right now is the utter desperation of the Europeans?

SCHMIDT: Yes, I think that's pretty fair. Putin's number one strategic goal isn't Ukraine. It's to crack NATO. And what we're seeing here is that he's either done that or come very close to it. And when this idea of collective security collapses, the ripple effects are going to extend deep into the future. The only way we protect ourselves from nuclear war is with collective security.

And if that goes away, individual countries are going to have to consider arming themselves with weapons of mass destruction, including Ukraine, in order to credibly deter aggressors. And that's a world that we don't want to live in.

VAUSE: You know, over the past few years, we've often talked about the folly of the previous U.S. administration and its reluctance to arm Ukraine from the very get-go with the very latest technology, the weapons, which they really needed. Would this current crisis be happening if all the advanced weapons, which Ukraine was eventually given, had been delivered within the first few months of the war?

SCHMIDT: If Biden had given Ukraine what it asked for when it asked for it, we would be in a very different situation now. Ukraine has incredibly fought the war. They have bravely fought the war. They have effectively fought the war without the weapons they've needed or with the weapons they've needed coming six months after they really needed them.

If they had had them in their hands, you would see Russia back on its heels and Ukraine at least in a much stronger negotiating position than its in today. But the real problem is, is that Zelenskyy has to mobilize down to the 20-year-olds and the 18-year-olds. And he hasn't done that yet because he needs that population to rebuild his country. So it's a strategic choice that he's making.

And he won't be able to continue to defend against Russia without significant Western support, without Western boots on the ground and planes in the air, because his manpower, his forces are just exhausted. They've been fighting for, you know, almost as long as World War II went on for the West. And we have to keep that in mind. And most of these are 40, 45-year-old men.

VAUSE: Yes. It's into its fourth year now. It has been a long war in many ways.

Matthew Schmidt, good to have you with us. Thank you.

SCHMIDT: My pleasure.

VAUSE: These are happy days for the Kremlin. The growing rift between the U.S. and Ukraine, which is driving a wedge between Washington and traditional European allies as well, and with the future of NATO alliance once again being questioned.

But as CNN's Matthew Chance reports, many Russians are skeptical about the increasingly Moscow friendly U.S. president.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Even Russian commentators saw this as a trap. A public flogging in the Oval Office, said one columnist. On state television, the Kremlin spokesman confirmed President Putin watched the drama unfold. Of course, Putin saw it with all of its nuances, Dmitry Peskov says. So did the entire world. It was, let's say, quite unprecedented, he adds.

Earlier, he said the new U.S. administration is rapidly changing all foreign policy configurations, which he said largely coincides with Russia's vision. But on the streets, ordinary Russians took the presidential bust up in their stride.

The fact there was a squabble is just part of the show, says Dmitri. Like good American cinema. The really important things will be decided behind the scenes, he says.

I'm against war and I'm waiting for this to finally end, says Natalia. In terms of what happened, though, it's probably more positive for Russia.

Already there are expectations in Moscow that U.S.-Russia talks, which began in Saudi Arabia last month, will now intensify. Even hopes a Trump-Putin summit will be fast-tracked.

And with the U.S. and Ukrainian leaders at odds negotiations to end the brutal war in Ukraine may be overshadowed by lucrative U.S.- Russian economic deals already being tabled behind closed doors.

[00:15:08]

Russian officials couldn't be happier with what they see as a seismic shift in Washington's geopolitical stance.

Trump is pragmatist. His slogan is common sense, says Sergey Lavrov, the Russian foreign minister. It's a shift to a different way of doing things. That's why it's interesting to work with him, he adds.

But again, on Moscow's streets, Trump's embrace is viewed with skepticism.

Trump doesn't really know much about what's happening in the world, says 74-year-old Vladimir. He has a very narrow view of purely financial tasks, he says.

But with Trump's lurch towards Russia, there is far more at stake than just money.

Matthew Chance, CNN, Moscow.

(END VIDEOTAPE)

VAUSE: After a slight improvement over the weekend, now comes word of a serious setback for Pope Francis. The very latest on his condition in just a moment.

(COMMERCIAL BREAK)

[00:20:42]

VAUSE: According to the Vatican, Pope Francis suffered two episodes of acute respiratory failure Monday, a major setback as he struggles to recover from the worst health crisis of his papacy.

CNN Vatican correspondent Christopher Lamb has details reporting in from Rome.

(BEGIN VIDEOTAPE)

LAMB: Well, it's been a roller coaster ride following Pope Francis's health crisis. And tonight on Monday was a setback with news from the Vatican that the Pope suffered two acute respiratory failures caused by an accumulation of mucus in the lungs, which a Vatican source said was a direct result of the pneumonia that Pope Francis has been battling. He's been in the hospital for 18 days. Francis is 88 years old and has a history of respiratory infections.

Now, the Vatican explained the Pope is back on a machine ventilation, receiving oxygen through a mask. He had come off that ventilation following a similar crisis of breathing this past Friday, but he's back on it now. There is, of course, concern in the Vatican for the Pope and people on Monday night gathering behind me in Saint Peters for a prayer service for the Pope. They've been gathering in Saint Peters every night in these past several days.

Tonight, the prayers led by Cardinal Robert Provost, a U.S. prelate based in the Vatican leading a department in the church's central administration. Now, Francis has been in the hospital for 18 days. We don't know how much longer he's going to be there. The prognosis remains reserved. That means it's too soon to tell. We are expecting a further update from the Vatican on the Pope's health on Tuesday.

Christopher Lamb, CNN, Rome.

(END VIDEOTAPE)

VAUSE: So let the tariff wars begin. As the U.S. president targets Mexico, Canada and China. Just what exactly is the point? What's the goal? More on that in a moment.

(COMMERCIAL BREAK)

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VAUSE: Welcome back. You're watching CNN NEWSROOM. I'm John Vause.

Our top story this hour, Donald Trump will be addressing a joint session of Congress in the day ahead. He's expected to focus on his new tariffs on the biggest U.S. trading partners, 25 percent on imports from Canada and Mexico. President Trump says both countries have been taking advantage of the U.S. And tariffs on Chinese imports are up from 10 percent to 20 percent as well.

China has just announced it will retaliate with 10 percent to 15 percent tariffs on a long list of U.S. goods, including chicken, wheat, corn and cotton.

To Los Angeles now and Ryan Patel, senior fellow at the Drucker School of Management at Claremont Graduate University.

How are you?

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT: I'm doing well, John. Always great joining you.

VAUSE: Good. So let's do this one more time. OK. How many times have we done this story? Since 2016. A 25 percent tariff on imports will drive up the price of the input, making it cost more. That's the point. Now, if people don't believe me or you, let's listen to the oracle of Omaha, Warren Buffett, talking to CBS.

(BEGIN VIDEO CLIP)

NORA O'DONNELL, CBS EVENING NEWS: How do you think tariffs will impact inflation?

WARRANT BUFFETT, CEO, BERKSHIRE HATHAWAY: Over time they're a tax on goods. I mean, you know, the Tooth Fairy doesn't pay.

(END VIDEO CLIP)

VAUSE: It isn't complicated. So let's listen to a spokesperson for toymaker Hasbro, which relies on a lot of imports from China. Here he is.

(BEGIN VIDEO CLIP)

TIM KIPLIN, PRESIDENT OF CONSUMER PRODUCTS, HASBRO: One of the things we're really trying to do in the situation with tariffs is make sure that our toys stay affordable but at a certain level, the tariffs are going to drive consumer prices up. There's really no way around that.

(END VIDEO CLIP)

VAUSE: And yet the president of the United States of America continues to insist the exporting country will pay the cost of the tariff, which makes about as much sense as believing the Tooth Fairy will, in fact, pay. So the fact that this will this message just doesn't seem to get through will have very serious consequences from this point on, to say the least.

PATEL: Well, you and I have done this dance. You said this over again. You know, I think when you think of tariffs, you think of consumer prices, you know, you think of what President Trump continues to do and I think continues to do is we have to look at it at face value that the economics don't make sense. But he's trying to negotiate. He's trying to create a bilateral deal. Right or wrong, that's what he's trying to do.

But the downstream effects of this, John, in a long term when it comes to a tariff, it's going to be on the consumer and not just on the consumer pricing, but the consumer confidence, which then affects the U.S. economic growth, which has a cyclical effect down the line. But I also think you heard some of this as well. There's some skepticism around how long will this go. Right? There's a retaliation. He's got a couple months.

[00:30:12]

And we've seen this in this place, where he's got some gray area here until the consumer actually feels it across all the aspects to it.

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Well, here's part of a statement from Canadian Prime Minister Justin Trudeau: "Canada will, effective 12:01 a.m. Eastern Standard Time tomorrow, respond with 25 percent tariffs against $155 billion of American goods, starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days' time. Our tariffs will remain in place until the U.S. trade action is withdrawn."

Now, that looks like we've got ourselves a good old-fashioned tariff war. But not just between the United States and Canada, but also Mexico. So, you know, these three countries have been part of a free trade

zone since 1994. And it seems tariffs alone will not bring back the manufacturing jobs which the United States lost because of NAFTA, or any other trade deals. Tariffs will not do that singlehandedly. And the other part of that equation just doesn't seem to be happening.

PATEL: Yes. I mean, I think there's a couple of things here. One, this impact is on trust. And trust, at the end of the day, when it comes to trade in neighboring countries, is huge.

Second, it's the trade dynamics. The trade dynamics is changing. Not only that, with -- in this region, but globally.

And the third thing, I think, is manufacturing. Let's be honest. You know, the key here is that the U.S. is trying to create manufacturing jobs back in the U.S., having more investments to come back into the U.S. to do so.

If it's in technology, semiconductors, as were seeing with companies with Taiwan or even auto, on the auto side.

However, John, it's not fast enough to be able to catch up what you lose in output. And so, that has an impact in supply chain.

And someone is going to get hurt. What I mean by that is there's going to be impact with cost loss; you know, damage through here, if this is a long-term aspect, and even in these manufacturing.

So, you mentioned this. There's no tooth fairy, but someone's paying for it. And I know it's going to be -- probably be us.

VAUSE: Yes. And just to return to our toy makers again, here's the president of the Toy Association, a job every 12-year-old wants. Here we go.

(BEGIN VIDEO CLIP)

GREG AHEARN, PRESIDENT AND CEO, THE TOY ASSOCIATION: Because of what we do for kids, particularly helping kids emotionally, mentally, physically, and so important to their childhood, that there would be a way to look at our industry, particularly the toy industry, and keep us out as an exclusion of any tariff policy.

(END VIDEO CLIP)

VAUSE: Not a chance, pal. But here's the thing: Does the U.S. really want those low-skill, low-paying jobs like making toys or cigarette lighters or stitching together gloves? Isn't it better for countries with cheap, low-skilled labor to do that? And Americans then pay lower prices? It's a win-win. And if you undo all that, then you know, it's not a win-win.

PATEL: Well, I mean, you're talking about what is the U.S. good at, right? What are they going to want to be in the future?

And to your point, right, what -- where is their industries to it? Is it going to be tech? Is it -- be as we see China moving toward high- end manufacturing, not low-end?

And you're making a great point. You have to have the infrastructure to pick which industry that you want to go in. If it is, that's where you want to compete to it.

But on top of all this, you know, I think you're going to see an escalation, John, too, on top of this. You mentioned that the toy industry says, I want to be excluded.

No, they want to be excluded, because there's going to be an escalation in this -- all this aspect to create this kind of uncertainty.

So, no matter what industry that you're in, you don't want to be facing the unknown which you have in the next couple of months. And so, I think you just play that toy factory to crush my dreams here. But I'm not going to get any toys from you anytime soon.

VAUSE: You get nothing. Nothing for you. Nothing for you. Not this year. Just coal.

Ryan, it is good to see you, though. Thanks for being with us.

PATEL: Yes. Thank you.

VAUSE: We shall pause right now, take a short break. You're watching CNN.

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VAUSE: The next great challenge in space travel is sending someone to Mars. One of the biggest unknowns right now is the ability of the human body to cope with such a long journey.

According to scientists, the right type of exercise could minimize the risks, and they're testing their theory with jumping mice.

Here's CNN's Lynda Kinkade.

(BEGIN VIDEOTAPE)

ELON MUSK, SPECIAL ADVISOR TO DONALD TRUMP: It looks like special effects.

LYNDA KINKADE, CNN ANCHOR/CORRESPONDENT (voice-over): Elon Musk and U.S. President Trump have spoken ambitiously about sending astronauts to Mars.

DONALD TRUMP, U.S. PRESIDENT: And we will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars.

KINKADE (voice-over): But are humans ready for such a trip? Some scientists are worried the long journey in weightlessness could impact astronauts' cartilage and joints.

One research team in the U.S. wanted to know whether jumping in space could be better for astronauts than other workouts, like running on a treadmill or riding a stationary bike.

DR. MARCO CHIABERGE, ASTRONOMER & RESEARCH SCIENTIST, JOHNS HOPKINS UNIVERSITY: There is good evidence that astronauts, even after a period of a few months, experience the very early signs of osteoarthritis.

And that is known from blood tests. They basically see the -- the biomarkers of cartilage degradation in astronauts.

KINKADE (voice-over): The researchers tested their hypothesis with a group of, quote, "space mice." The mice that underwent nine weeks of limited movement showed early signs of arthritis.

Another group of mice did jump training for nine weeks and came out with healthier, thicker cartilage.

[00:40:06]

While more studies need to be done to confirm whether this sort of exercise can help humans, like astronauts on a three-year trip to Mars, the study's leader says the results are promising.

CHIABERGE: It's good for cardiovascular fitness. It's good for bone health, muscle strength, power.

KINKADE (voice-over): As a new era of space travel emerges, these space mice have shown that the key to a safe trip could be the difference between a hop, skip, and a jump.

Lynda Kinkade, CNN.

(END VIDEOTAPE)

VAUSE: Thank you for watching CNN NEWSROOM. I'm John Vause. I'll be back with more news at the top of the hour. In the meantime, please stay with us. WORLD SPORT starts after a short break. We'll see you right back here, about 19 minutes.

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