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South Korean Court Removes President Yoon from Office; Asia Markets Tumble on Trump's Sweeping New Tariffs; Economic Overview of Impact of Trump Tariffs; E.U. Has 'Major Concerns' with U.S. Calculations for Tariffs. Aired 12-12:45a ET

Aired April 04, 2025 - 00:00   ET

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

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JOHN VAUSE, CNN INTERNATIONAL ANCHOR: He's out. South Korea's impeached president officially and immediately removed from office, ahead on CNN NEWSROOM.

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(CHEERING)

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VAUSE: Celebrations in the streets of Seoul after a unanimous verdict from the constitutional court.

As Trump's tariffs tank global markets around the world, the U.S. president says, Trust me.

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DONALD TRUMP, U.S. PRESIDENT: The markets are going to boom. The stock is going to boom. The country is going to boom.

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VAUSE: And so, for Donald Trump, full speed ahead and damn the torpedoes.

And after Liberation Day Wednesday comes retaliation day Thursday.

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MARK CARNEY, CANADIAN PRIME MINISTER: The system of global trade anchored on the United States is over.

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VAUSE: Canada imposes counter tariffs on some U.S. imports while talking with allies about a united response.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause. VAUSE: First, the breaking news from South Korea, where the

constitutional court has ruled in favor of removing impeached President Yoon Suk Yeol from office, effective immediately.

The unanimous decision from the court's eight judges sparked celebrations among protesters, who were outraged by Yeol's [SIC] decision to briefly impose martial law back in December. What was followed by months of political turmoil and legal battles. South Koreans will get to vote for a new president within the next 60 days.

Live now to Seoul. CNN's Mike Valerio there. So, walk us through what happens and what happens next.

MIKE VALERIO, CNN CORRESPONDENT: Sure, John. Well, bottom line, this really removes the specter of martial law that had cast a pall over this hugely important bastion of democracy and economy in Southeast -- in East Asia for four months.

So, what we had here. was a unanimous decision by eight of the country's top constitutional court justices that said what Yoon Suk Yeol did, the now former president of South Korea, was illegal by trying to, from his point of view, alleviate a political crisis by sending troops, the military, to the heart of South Korea's democracy.

Not only was that illegal, but that was outside the bounds of South Korea's constitution.

So, that was the decision that was made just a short time ago.

And where we are, John, we're planted right in front of Gwanghwamun Gate. This has been a meeting place for the better part of centuries now in the heart of Seoul.

And in the background right here, young protesters who are in favor of getting rid of Yoon. And if we zoom in to some of these flags, the wind might be getting in the way of some of them. I'm looking at one that is green and yellow. These are young protest groups.

The green and yellow one, for example, says "Vegan French Fries." You know, these are just supposed to be humorous names of protest groups to get young people involved.

And then over my right-hand shoulder, there's a lamb, Christian imagery. That shows you the contrast. We go from "Vegan French Fries" to "Shining a Light," Christian group standing for democratic rights.

And then let's see if we can pan over a little bit more to my right. You see this section largely sealed off. Maybe one or two cabs passing through, but there are a whole host of police busses that were trying to seal off this area, secure the area very close to the constitutional court.

OK, so what happens now? Within the next 60 days, John, South Korea is going to be tasked with picking a new president, somebody who can go toe-to-toe with the Trump administration. It was yesterday when, in the Rose Garden, President Trump announced

25, 26 percent tariffs against South Korea, hugely reliant on its export industry. Hyundai Kia sending -- General Motors in the port city of Incheon sending cars from Point A to Point B here across the Pacific Ocean to the port of Los Angeles and other ports in the United States.

So, South Korea right now has an acting president. The primary process is going to begin in May to decide on who takes up the mantle, who represents the spirit of this nation to fight for South Korea as it engages in this new trade war?

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It's going to be a little tough, because similar to Japan, South Korea relies on the United States for security. So, unlike China, it perhaps can't go toe-to-toe in a direct confrontation with the United States.

But as you can tell, you know, there was, I would say, John, when we first joined you a couple of minutes ago, there was dancing in the streets. People were crying.

Supporters of President Yoon, conservative members of the electorate, crestfallen. From their point of view, they see this process as stealing their president from them.

In fact, for protests over the past few months, we had seen "Stop the Steal" signs, mimicking "Stop the Steal" signs that we would see in conservative rallies within the United States.

So, a moment to breathe across all quarters of South Korea, really an inflection point. So, now that President Yoon is out, the search over the next two months continues. Who will be the next president?

Likely, as things stand right now, the liberal politician Lee Jae- Myung, who lost barely to President Yoon in the last presidential election. He is seen as likely to take over.

But just very much an inflection point here as South Korea is ready to move on to a new chapter, John.

VAUSE: Mike, thank you. Mike Valerio there, live for us with the demonstrators outside the constitutional court there in Seoul. Thanks, Mike.

The first full day of Donald Trump's so-called economic liberation saw global markets plunge, losing trillions of dollars in value. A falling U.S. dollar, as well.

Also, allies and foes alike planning retaliation. And despite dire predictions of a looming global trade war, the U.S. president believes all is going well.

That's a day after he announced sweeping new tariffs on every U.S. trading partner. Here's what going well looks like. Financial markets in the U.S. saw

their worst day on Thursday in five years. The Dow lost almost 4 percent, the S&P 500 almost 5 percent down. The tech heavy NASDAQ nearly 6 percent down.

But the message to Wall Street from the White House is trust the president and his economic plan.

Right now, in Asia, Hong Kong's Hang Seng. Japan's Nikkei, the Seoul KOSPI, the ASX -- ASX are all way down. The U.S. dollar falling to its weakest level since October, wiping out gains made since Trump's election victory in November.

The president, though, unconcerned by the bloodbath on Wall Street, arguing imposing tariffs is like performing delicate medical surgery.

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TRUMP: It was a sick patient. It went through an operation on Liberation Day. And it's going to be -- it's going to be a booming country, a very booming country. It's going to be amazing, actually.

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VAUSE: Canada's prime minister announced a 25 percent tariff on vehicles imported from the U.S., which are already exempt under a free trade -- which are not already exempt under a free trade deal with the U.S. and Mexico.

Mark Carney says trading with the U.S. in this new era of Trump tariffs is a tragedy.

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CARNEY: The system of global trade, anchored on the United States, that Canada has relied on since the end of the Second World War, a system that, while not perfect, has helped to deliver prosperity for our country for decades, is over.

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VAUSE: CNN's Hanako Montgomery, live for us in Tokyo again. Welcome back.

Some countries are retaliating, or will soon retaliate, like Canada. Others are still considering their options and best ways to retaliate. Others don't really have a lot of options at this point. It seems Japan is in that last group.

HANAKO MONTGOMERY, CNN INTERNATIONAL CORRESPONDENT: Yes, John, you're absolutely right.

I mean, Japan yesterday described these tariffs as very -- as very unfortunate and very harsh. But of course, Japan isn't able to really retaliate in this way, because it's very reliant on the U.S. in terms of its economy. Now, interestingly, John, as you mentioned there, we're expecting some

tariffs from -- from certain countries. For instance, China is one that has vowed to retaliate with, in some way, shape or form.

So far, though, we haven't heard of any countermeasures that China has announced. And that could be because today, for instance, it's a public holiday. It's Tomb Sweeping Day in China.

So, those announcements might come at a later date, perhaps in the coming days or weeks. But of course, when that news does break, John, we will alert you to that.

But interestingly, John, other countries in the Asia Pacific region haven't really come up with any concrete countermeasures, any retaliatory tariffs, even Southeast Asian nations that were hit particularly hard by these latest tariff increases, like, for instance, Cambodia and Vietnam.

Cambodia is now facing 49 percent tariffs, Vietnam 46 percent tariffs. And these are much higher than what a lot of analysts were expecting.

Now, according to the experts I've spoken to, John, many say that this is because, in the coming -- in the past few years, many international companies have been moving production to the Southeast Asian nations from China to avoid the existing levies that have been imposed on China by the U.S. president during his first term.

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So, it's now much cheaper to do business in this part of the world than it is to do in China.

Now, international companies -- I'm talking about, for instance, Apple and Nike, which do have factories in, for instance, Vietnam. And in light of Trump's recent announcements, of course, stocks of those companies are down.

Apple stocks are down about 9 percent right now. Nike down about 14 percent. These are huge, huge numbers.

Even the benchmark index for Vietnam is down about 4 percent. I mean, really, really significant losses here in the stock market.

Also, about Vietnam, John, I do want to point out here that about 30 percent of its GDP comes from U.S. exports. So, how Vietnam is going to handle the potential economic fallout, how it's going to manage the potential damage, we're just going to have to wait and see.

But clearly, very, very significant losses for the country.

And again, John, it doesn't look as though many countries in the Asia- Pacific region will hit back and will really counter with any specific reciprocal tariffs. But of course, they are looking to engage the United States president in some kind of talks in the hopes of potentially softening the blow in some way, shape or form -- John.

VAUSE: Hanako, thank you. Hanako Montgomery there. And thank you.

Richard quest, host of QUEST MEANS BUSINESS, joins us now from New York. It's good to see you.

RICHARD QUEST, HOST, QUEST MEANS BUSINESS: Thank you sir. Thank you.

VAUSE: Now, Donald Trump has a unique view on the role tariffs have played in American history. This is part of what he said in the Rose Garden Wednesday.

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TRUMP: From 1789 to 1913, we were a tariff-backed nation, and the United States was proportionately the wealthiest it has ever been.

In 1913, for reasons unknown to mankind, they established the income tax, so that citizens, rather than foreign countries, would start paying the money necessary to run our government.

Then, in 1929, it all came to a very abrupt end with the Great Depression, and it would have never happened if they had stayed with the tariff policy.

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VAUSE: And by unique, I mean totally and completely wrong on almost everything he said just then. So, if the historical context is wrong, does it follow the president's assumptions on how tariffs will work now is also wrong?

QUEST: He's misguided. I would never want to describe --

VAUSE: You're kind.

QUEST: Well, I would never, out of respect for the office.

He talks about those days, but he's forgotten, of course, that in 1890, when tariffs were used for tin to try and boost the tin production in the United States, it took the best part of 15 years to do that.

You then move forward to the other tariff laws from McKinley and then on to McCumber and all the others. Tariffs were used in very different circumstances, but they weren't raising enough money and, hence, why income tax was brought in.

And then you end up with the most famous tariffs of all, which was the Smoot-Hawley, which worsened the Depression.

You can't overstate the reality that, in a modern economic environment, the use of tariffs is legitimate in certain circumstances. But as a general revenue-raising operation, absolutely not.

VAUSE: They are a policy tool, to be sure. And for the record, Ben Stein preemptively debunked the -- the president's tariff policy in 1986.

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BEN STEIN, ACTOR/COMMENTATOR: In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the -- anyone, anyone? -- the Great Depression passed the -- anyone, anyone? -- a tariff bill, the Hawley-Smoot Tariff Act, which -- anyone, raised or lowered? -- raised tariffs in an effort to collect more revenue for the federal government.

Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression.

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VAUSE: "Ferris Bueller's Day Off."

Now, there is universal agreement that increasing tariffs in 1930 was a very, very bad call. Have you ever heard anyone make a credible argument the Great Depression would not have happened --

QUEST: No.

VAUSE: -- if the U.S. had continued to impose tariffs?

QUEST: No, no, because, you see, what had happened was in the 19 -- in the late teens, you had these tariffs acts which were then reversed, and then you went into a period of open trade.

And even when they tried to do open trade, or even when they tried to amend some of the tariff laws, they got it so wrong that they made the tariff restrictions even greater.

There is pretty much no example of where tariffs have actually improved the long-term economic benefit of the country. It's only made things worse.

VAUSE: So, not only is sort of Donald Trump wrong, what tariffs can do and have done, there's also this strange belief he has that the United States is being ripped off because of free trade.

Some countries have not followed the rules, to be sure, but the reality is opening up. The world economy has been of great benefit to the United States, as well as many others.

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QUEST: And it has -- and if there's one country that has disproportionately benefited from open trade in the post -- the Second World War, it is -- most certainly is the United States.

Where, I think, the twist is, John, where I think the twist is, is that there hasn't been a rebalancing. That, as certain countries no longer needed the full benefits of it, they've not been restricted and pulled back. Too many countries have been allowed to enjoy too many benefits at the

U.S. expense for too long. That is the bit where you needed, to quote President Trump today, you know, the operation, the scalpel, the gentleness. But instead, the sledgehammer was brought in instead.

VAUSE: Well, economist Douglas Irwin tweeted this.

QUEST: Yes.

VAUSE: "We have a 20th Century president in a 21st Century economy who wants to take us back to the 19th Century."

If that's not bad enough, listen to the U.S. commerce secretary, Howard Lutnick. Here he is.

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HOWARD LUTNICK, U.S. COMMERCE SECRETARY: I don't think there's any chance they're going to -- that President Trump's going to back off his tariffs. This is the reordering of global trade.

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VAUSE: So, in other words, damn the torpedoes. There's no turning back?

QUEST: We don't know, because Lutnick has said no negotiations. But the reality is, the president on Air Force One, going to Florida, basically said that there would be some negotiations, quote, "if they" -- if countries made phenomenal offers.

We just don't know.

And John, you know, there are two distinct aspects here. There is the practical aspect of the global trade environment, the world network having to readjust to this sledgehammer being pulled down on them.

And then you've got the philosophical, which is what we're talking about now. And there is no recent modern example of tariffs being used on this wide exchange that has been successful.

And quite the opposite. It's always been horrendously unsuccessful for the very reason -- stay with history. Stay with history.

Ronald Reagan, when president, did one of his Sunday radio addresses in which he went through all the reasons why he was not agreeing to general tariff increases, and they've all true as then and they're all true today.

VAUSE: Good to see you, Richard. Thank you.

The White House has fired the director and deputy director of the National Security Agency. And after the break, the very latest details on this story, just into CNN.

Also, a day after the Israeli prime minister and subject of a warrant from the International Criminal Court arrives in Hungary, the country announces it's withdrawing from the ICC.

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VAUSE: A major shakeup of the U.S. intelligence community, with both the director and deputy director of the National Security Agency forced out.

Just why the Trump administration fired General Timothy Haugh and his deputy, Wendy Noble, remains unknown. Democrats on the Senate and House Intelligence Committees have slammed this decision.

This comes, according to one source, after President Donald Trump met with far-right activist Laura Loomer on Wednesday. She urged a number of administration officials to be fired.

Keep in mind this -- this woman claimed 9/11 was an inside job. She urged the president to remove several National Security Council staffers for disloyalty.

President Trump defended the firings earlier Thursday, said Loomer was not involved.

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TRUMP: Laura Loomer is a very good patriot. She is a very strong person. And I saw her yesterday for a little while. She has -- she makes recommendations of things and people. And sometimes I listen to those recommendations, like I do with everybody. I listen to everybody, and then I make a decision.

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VAUSE: Loomer was an influential voice around President Trump during the 2024 campaign, even though a number of his advisers tried to keep her at arm's length.

Hungary plans to withdraw from the International Criminal Court, becoming the only country in the E.U. to do so. Hungarian Prime Minister Viktor Orban says the court is a political tool.

He welcomed Israeli Prime Minister Benjamin Netanyahu to Budapest Thursday, ignoring the ICC's arrest warrant for the Israeli leader. It's the first time Netanyahu has traveled to Europe since the court called for his arrest last May.

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BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: You've just taken a bold and principled position on the ICC, and I thank you, Viktor. This is not only important for us, it's important for all democracies. It's important to stand up to this corrupt organization.

(END VIDEO CLIP) VAUSE: The ICC claims Netanyahu bears criminal responsibility for war crimes in Gaza, including crimes against humanity and starvation as a method of warfare.

The European Union taking issue with White House math and how the Trump administration arrived at the figures for its sweeping new tariffs, which Europe calls unjustified. More on that in a moment.

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VAUSE: Welcome back. You're watching CNN NEWSROOM. I'm John Vause. Let's check today's top stories.

South Korea's constitutional court has removed President Yoon Suk Yeol from office. The decision, four months after his brief martial law declaration, sparked jubilant protests in Seoul.

With Yoon's impeachment now final, a new presidential election will be held within 60 days.

Hungary plans to withdraw from the International Criminal Court, calling it a political tool. Israeli Prime Minister Benjamin Netanyahu arrived in Budapest Thursday for his first trip to Europe since the ICC called for his arrest last May.

The court claims Netanyahu bears criminal responsibility for war crimes in Gaza.

Trillions of dollars in value for American companies vanished Thursday as U.S. stocks suffered their worst day in years. The Dow lost almost 4 percent, the S&P down almost 5 percent, the NASDAQ just shy of 6 percent.

These losses are directly linked to reaction to President Trump's tariffs and the burgeoning trade war.

And the E.U. is calling out the White House for what it describes as the dubious mythology -- methodology, rather -- used to calculate new tariffs levied on U.S. trading partners. One senior official describes the tariffs as unlawful and unjustified.

More now from CNN's Fred Pleitgen.

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FREDERIK 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 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."

TRUMP: 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 VAN DER LEYEN, EUROPEAN COMMISSION PRESIDENT: 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.

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VAUSE: A senior Russian negotiator says the Trump administration understands Russian concerns after his high-level talks with U.S. officials on Thursday.

According to Russian state media, Kirill Dmitriev says the main issue is now restoring Russia-America ties, a relationship which was apparently interrupted during the Biden administration.

He also told CNN there has been major progress regarding a ceasefire in Ukraine, thanks to the Trump White House.

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KIRILL DMITRIEV, RUSSIAN PRESIDENT VLADIMIR PUTIN'S SPECIAL ENVOY: I think there is an understanding for how we can move to finalize the agreement. And there have been lots of discussion in that realm.

Lots of differences still remain --

UNIDENTIFIED MALE: Right.

DMITRIEV: -- but I think there are several paths to try to address all of the issues, and only diplomatic solution can be possible.

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VAUSE: Dmitriev also pointed to the absence of Russia from the list of global tariffs, which the Donald -- which President Trump unveiled on Wednesday.

Another high-profile visitor for Greenland. Denmark's prime minister arriving with a warning for the United States. We'll tell you what she said in a moment.

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VAUSE: Slovakia is planning to cull 350 bears after a rising number of bear attacks, the latest leaving one man dead.

According to the government, almost 2,000 bear attacks were reported just last year.

Environmental groups, though, have criticized the cull, saying it is a violation of Slovakia's international agreements. Denmark's prime minister has a message for the United States: You

can't annex another country.

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METTE FREDERIKSEN, DANISH PRIME MINISTER: This is not only about Greenland or Denmark. This is about the world order that we have built together across the Atlantic over generations.

You cannot annex another country, not even with an argument about international security.

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VAUSE: Mette Frederiksen made that warning while visiting Greenland, an autonomous territory which is part of Denmark. President Donald Trump has called for making Greenland part of the United States.

U.S. Vice President J.D. Vance visited the island last week and claimed the U.S. would do a better job of protecting Greenland than Denmark.

But Frederiksen rejected that, saying the U.S. should collaborate with Denmark on arctic security.

Her comments came as U.S. Secretary of State Marco Rubio met with his Danish counterpart on the sidelines of a NATO meeting. The State Department says Rubio affirmed the strong relationship between both countries.

Thank you for watching. I'm John Vause, back at the top of the hour with more CNN NEWSROOM. But please stay with us. WORLD SPORT starts after a short break.

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