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Global Markets Continued Its Downfall as Fears of Recession Grows; Constitutional Court Removes Impeached South Korean President; Canadian P.M. Slams Trump's Tariff Measures; Seven People Killed in Powerful Tornadoes Across Central U.S. States. Aired 3-4a ET

Aired April 04, 2025 - 03:00   ET

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

[03:00:00]

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KIM BRUNHUBER, CNN ANCHOR: Hello and welcome to all of you watching us around the world. I'm Kim Brunhuber. This is "CNN Newsroom."

Markets tumble around the world as recession fears grow after Trump's reciprocal tariffs.

(BEGIN VIDEO CLIP)

GEORGE GLASSMAN, PRESIDENT, GLASSMAN AUTOMOTIVE GROUP: We haven't seen anything, in my opinion, this disruptive as long as I've been in the business.

(END VIDEO CLIP)

BRUNHUBER: Bracing for auto tariffs. How U.S. shoppers are planning to deal with the looming threat of higher prices.

Plus, South Korea's impeached President Yoon immediately removed from office the implications around the country.

UNKNOWN (voice-over): Live from Atlanta, this is "CNN Newsroom" with Kim Brunhuber.

BRUNHUBER: The first full day of Donald Trump's so-called economic liberation saw global markets plunge, losing trillions of dollars in value. The falling U.S. dollar with allies and foes alike planning retaliation and despite dire predictions of a glooming global trade war, the U.S. President believes all's going well a day after he announced sweeping new tariffs on practically every U.S. trading partner.

European markets are just now opening. We'll check in on them in a moment. Right now in Asia, as we approach the close of the trading day across the continent, Hong Kong's Hang Seng stock index, Japan's Nikkei, the Seoul KOSPI, along with Australia's ASX are all down.

And here's a look at U.S. futures right now, all slightly down at the moment. On Thursday, the three major U.S. indices posted their worst day since 2020. The White House is telling Wall Street to trust in President Trump's economic plan.

And the U.S. Commerce Secretary says the President isn't going to back down on tariffs. Trump downplayed Wall Street's losses and suggested he's open to negotiating tariff relief. Here he is.

(BEGIN VIDEO CLIP)

REPORTER: How is it going?

DONALD TRUMP, U.S. PRESIDENT: I think it's going very well. It was an operation like when a patient gets operated on, the markets are going to boom, the stock is going to boom, the country is going to boom, and the rest of the world wants to see, is there any way they can make a deal?

(END VIDEO CLIP)

BRUNHUBER: I'm going to go live now to Tokyo and CNN's Hanako Montgomery. So Hanako, take us through the fallout that you've been seeing in the region so far.

HANAKO MONTGOMERY, CNN CORRESPONDENT: Hi again. Hi, Kim. It's good to see you again.

So Asia's stock markets are still reacting and reeling from the U.S. tariff hikes. I mean, just take a look at Japanese stocks. They're set for the biggest weekly losses since 2020, which was, of course, the pandemic.

But interestingly, Kim, many Asian countries have so far refrained from announcing any concrete countermeasures, from announcing any reciprocal tariffs. Even nations in Southeast Asia, which were hit particularly hard by these tariff hikes, and where there is a lot of concern about the potential economic damage to the domestic economy.

Here's what one garment worker from Cambodia said about their concerns.

(BEGIN VIDEO CLIP)

SANG KONG, GARMENT FACTORY WORKER (through translator): I want the U.S. to reduce the tariff on the country, and I want the factory to give me more overtime work so workers can make more money. With the introduction of these tariffs, if the factory shuts down, we'll all die because we can't afford to live with high costs from the rent and all kinds of goods and food, too.

(END VIDEO CLIP)

MONTGOMERY: I mean, Kim, very real fears here. And just for some context, Cambodia is now facing 49 percent tariffs, which will be very significant for the country, because more than a third of its exports actually go to the United States, according to recent CNN calculations.

Now, Vietnam is a country that also faces a similar fate with 46 percent tariffs now from the United States. Also interestingly about Vietnam is that about a third of its GDP comes from U.S. exports. So again, lots of potential losses here that are really concerning these two countries.

Now, I've spoken to a couple of experts here, Kim, about just why Southeast Asian nations are facing such high tariff hikes. And the reason seems to be because in recent years, many international companies have been moving their supply chains and their factories to this part of the region -- to this part of the world, to avoid the existing levies on China. They're moving away from China to Southeast Asia because business is cheaper there.

But of course, as we're seeing now, it's impossible to avoid Trump's tariffs. And it was going to be still very expensive. And of course, in terms of international companies I'm referring to here, Nike and Apple, two very large companies also seeing losses.

We saw from the stock market today, Apple was down about 9 percent. Nike also down more than 14 percent. Very, very significant losses, Kim.

[03:05:06]

And just again, of course, these countries, despite seeing very significant potential economic damage, they're not going to be announcing any reciprocal tariffs just yet. They're instead looking to engage the U.S. president in talks in the hopes of potentially softening the blow somehow and engaging in a bit of diplomacy, seeing if there's any wiggle room there in order to kind of, again, soften the blow. Kim?

BRUNHUBER: Yes, I'll see if they can negotiate their way out of it. Hanako Montgomery, thank you so much.

So amid all the economic chaos, President Trump left for his golf course in Miami. CNN's Jeff Zeleny has our report from West Palm Beach.

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JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: As the United States is one day away from implementing the first of two tariff deadlines, President Trump is defending his massive tariff policy that would indeed change how global trading is done. The biggest change to that in nearly a century. Now, the president has said his deadline is hard and fast.

There's a 10 percent tariff going into effect on Saturday, followed by next Wednesday, a country-by-country tariff, putting China's tariff, just for one example, at 54 percent.

But flying down to Florida on Thursday, President Trump signaled he's open to negotiation.

TRUMP: Every country's called us. That's the beauty of what we do. We put ourselves in the driver's seat. If we would have asked some of these countries, almost most of these

countries to do us a favor, they would have said, no, now they'll do anything for us. But we have tariffs, they've been set. And it's going to make our country very rich.

ZELENY: Making our country very rich, the president says. But that is disputed by many economists because tariffs, of course, are a tax paid on imports. Things will be paid and passed along to American consumers.

That is what set the financial markets here in the United States and indeed around the world tumbling on Thursday, with futures already showing a similar result in early trading going into Friday. Now, the White House is saying that everything is fine here. The president is saying the markets are going to go boom.

But that very much is an open question here. But the president not using the power of his bully pulpit to travel to an American factory to talk about this Made in America philosophy, this America First agenda that really is at the heart of this policy. Instead, flying to Florida for a golf event on Thursday night, followed by a long working weekend in Florida.

There is no question this is the biggest gamble of the Trump presidency.

Jeff Zeleny, CNN, West Palm Beach, Florida.

(END VIDEOTAPE)

BRUNHUBER: Well, as one might expect, none of this is going over well in Europe. Let's take a look at some of the main markets during this first hour of trading. You can see there they're all in the red.

Now, this comes as the European Commission president says the E.U. is finalizing its first round of countermeasures. And the French president is calling the tariffs brutal and unfounded.

Emmanuel Macron insisted on European solidarity and suggested firms suspend investment in the United States. Here he is.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT (through translator): If the response to the tariffs put in place by the U.S. administration is to make immediate concessions or to announce investments to get exemptions, it's a very bad idea because we have a strength. It's a market of 450 million residents. That's Europe.

The E.U. is 450 million consumers. It's more than the U.S. market.

(END VIDEO CLIP)

BRUNHUBER: Meanwhile, the German chancellor warns the Trump tariffs will cause harm around the world and the U.S. itself. Here he is.

(BEGIN VIDEO CLIP)

OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): I believe the latest decision on tariffs by the U.S. President are fundamentally wrong. This is an attack on a trade order that has created prosperity all over the world.

A trade order that is essentially the result of American endeavor. The entire global economy will suffer from these ill-considered decisions.

(END VIDEO CLIP)

BRUNHUBER: I want to bring in Frederick Neumann, chief Asia economist and co-head of global research for HSBC. He joins me live this hour from Hong Kong. Thank you so much for being here with us.

The consensus among many experts seems to be that the scope of the tariffs were beyond what they predicted. The chief economist at Moody's Analytics said it was worse than even his worst case scenario. Do you agree with that?

FREDERICK NEUMANN, CHIEF ASIA ECONOMIST AND CO-HEAD FOR GLOBAL RESEARCH FOR ASIA-PACIFIC, HSBC: Yes, and certainly if you look at the market reaction, investors did not really expect this coming, nor did most economists. This is really larger than I think most of the economic community, the analyst community, investor community had penciled in.

Very sweeping tariffs, of course, not just on select countries, but on a broad swath of countries. 60 countries receiving very high tariffs indeed, and that will affect a lot of trade going into the United States. Of course, raising prices for U.S. consumers, but also a headwind for growth elsewhere in the world, particularly in the economies in Asia that are so manufacturing-export dependent.

[03:10:07]

We know factory workers in Southeast Asia worried about where the next paycheck is coming from, investment being put on hold. So the reverberations across Asia are really large. You see that really sweeping across the region here.

BRUNHUBER: Let's talk about the response then around the region. I mean, the Trump administration has warned countries not to retaliate because it would further escalate things. And some in Europe and in Asia have actually agreed that it would be counterproductive to do that.

So, what kind of reaction are you expecting in the next days?

NEUMANN: Well, so far, it's actually very, very calm. Governments have kind of an await-and-see attitude. Some have said we're not going to retaliate, others saying we keep our options open.

But really broadly, really across Asia, officials are still hoping that the door is a little bit ajar to kind of negotiate these tariffs away or lower them. Remember, they're only being imposed really on April 9th. So there's still a few days where you can maybe call the White House, make an offer, hope for a reduction here.

But some of the larger economies, China certainly have signaled that ultimately they will consider retaliation measures. The smaller economies maybe don't have the leverage necessarily. But certainly China is among those that's considering implementing some retaliatory measures against these tariffs.

BRUNHUBER: You talked briefly that this would affect the U.S. itself. So the impact on Americans, I mean, some have called it the largest tax increase since World War II. So what impact do you think it will have here in the U.S.?

NEUMANN: Well, certainly in the near term, it's been very difficult to move production back into the United States. Anybody who wants to buy a foreign-made car, who wants to buy apparel made in Asia, wants to buy electronics, for example, a smartphone, will have to pay higher prices because it will take time to shift that production back into the United States. So it affects all sort of goods that we are used to in supermarkets, in shopping malls, all these goods will be more expensive, at least for a while.

And that could, of course, even prompt the Federal Reserve not to cut interest rates or even to hike interest rates. So it's not just for the everyday consumer a challenge, but also businesses, because it might mean higher interest rates.

BRUNHUBER: Now, it's hard to know exactly how this will shake out in the short term, let alone the long term, but many have predicted that countries abroad might pivot away from the U.S. You've argued that this might provide an opportunity for Asia to decouple from the U.S. How big a decoupling do you see happening, and what exactly would that mean?

NEUMANN: Well, in many ways, the U.S. is taking itself out of this global trading system, but the rest of the world is still really keen to trade, to have cross-border investment, certainly in Asia, but also in Europe. There's a lot of interest in keep trade going. So one scenario here, and certainly likely, is that the rest of the world will not want to go down this path, that they want to continue to push ahead with liberalization, and that the risk here for the U.S. is going to be left behind.

But for this scenario to play out, you need leadership in the rest of the world. And so it's upon China and the European Union in particular to lead the world towards more free trade, even if the U.S. says, no, thank you, I've had enough, we're going to do tariffs.

But you're going to see the rest of the world try to resist this probably in the coming months. It will be difficult, be challenging, but there's enormous interest in this part of the world, but also in Europe, to maintain free trade and open borders.

BRUNHUBER: Yes, it'll be interesting to see how these reverberations shake out. Frederick Neumann in Hong Kong, I really appreciate your analysis. Thanks so much. Protests and celebrations in the streets of Seoul as South Korea's

constitutional court makes a decision on the fate of embattled President Yoon Suk-yeol. We'll go live to the scene.

Plus, Secretary of State of the U.S. says the U.S. isn't leaving NATO, despite wider concerns. A lot more on that next. Please stay with us.

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[03:15:00]

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BRUNHUBER: Jubilation in the streets of Seoul as opponents of South Korean President Yoon Suk-yeol celebrate his impeachment. The country's constitutional court ruled unanimously that Yoon be removed from his position effective immediately. They found his short-lived declaration of martial law in December to be a violation of the constitution. Moon has since issued a written apology, saying he's sorry he couldn't live up to expectations.

CNN's Mike Valerio is live this hour in Seoul. Mike, take me through the reaction we're seeing there in South Korea and what happens next.

MIKE VALERIO, CNN CORRESPONDENT: Well, the relief, I mean, Kim, when we show you the video of what it was like around 11:30 our time, there were people who were dancing in the streets in terms of people who thought that martial law was one of the darkest chapters of Korean history in the 21st century when South Korea's now former president, Yoon Suk-yeol, declared martial law on the evening of December 3rd last year into the early morning hours of December 4th to try to end a political logjam sending troops to the National Assembly to send a message.

[03:20:08]

And lawyers for the National Assembly said those troops were there to arrest rival lawmakers.

Now, ex-president Yoon Suk-yeol has denied that. But certainly jubilation from people who did not want to go down the road of martial law. Again, you have to look to South Korea's history in the 1980s when the military loomed large over people's lives ruling through martial law. This was something that so many people did not want to repeat once again.

Yoon supporters, though, completely crestfallen. Plenty of them thinking, Kim, that this process was stealing the president through untoward means, stealing the president out of the administration. So, of course, they are disconsolate at this hour.

But one of the important things we should know is that now the ex- president has sent out a statement. I think that we have a picture of it in the control room. Let's put it up if we haven't already done so on the screen. And it referred to his time as leader of South Korea in the past tense

saying that it was a great honor to work for the Republic of Korea, to be emblematic and to represent the Republic of Korea and also thanked his supporters for standing with him even though he has his own shortcomings, a quote from the statement.

Although we also want to listen to a quote from the now acting president. This is the number two person who was underneath now ex- president Yoon Suk-yeol. So he's in charge of the country on an acting basis.

And it's not so much how he says these words, it's what he says moving the country on. Listen to what he told the nation a little while ago.

(BEGIN VIDEO CLIP)

HAN DUCK-SOO, SOUTH KOREAN ACTING PRESIDENT (through translator): In support of the will of the sovereign people, we will do our best to manage the next presidential election so that the next government can be launched without disruption in accordance with the constitution and laws.

(END VIDEO CLIP)

VALERIO: The point is moving on, Kim, to the next presidential election here in South Korea rather than rejecting the decision of South Korea's highest court, which was a fear that myriad people, that myriad quarters of South Korea had. So many people were wondering if the now ex-president was removed, would he accept that decision? And it's clear that he has, it's clear that his party has as well.

So now who is going to be the next president? An election within the next 60 days. Somebody will need to be elected who can go toe-to-toe with the Trump administration because of these steep 25 percent tariffs that have been levied against South Korea. An American ally, Kim.

BRUNHUBER: Yes, so much uncertainty. Mike Valerio in Seoul. Thanks so much.

Well, there was a major shake-up of the U.S. intelligence community. We've learned the Trump administration has fired the director and deputy director of the National Security Agency.

Now, it wasn't immediately clear why. General Timothy Hawk, as well as his second-in-command, Wendy Noble, were let go. But according to sources, their removal comes after a meeting Wednesday between President Trump and Laura Loomer, a far-right conspiracy theorist who once claimed 9/11 was an inside job.

Loomer apparently urged the president to remove a number of officials on the National Security Council for disloyalty. President Trump defended the firings earlier Thursday and said Loomer wasn't involved. Here he is.

(BEGIN VIDEO CLIP) TRUMP: Laura Loomer is a very good patron. She is a very strong person. And I saw her yesterday for a little while.

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.

(END VIDEO CLIP)

BRUNHUBER: Loomer was an influential voice around President Trump during the 2024 campaign, even though several of his advisors tried to keep her at a distance.

The U.S. Secretary of State is balancing the global shock of President Trump's new tariffs with another day of NATO meetings in Brussels. On Thursday, Marco Rubio had to dismiss concerns the U.S. will exit the alliance. Rubio even stressed the importance of NATO's strength after President Donald Trump cast doubt on his support for the organization.

(BEGIN VIDEO CLIP)

MARCO RUBIO, U.S. SECRETARY OF STATE: As we speak right now, the United States is as active in NATO as it has ever been. And some of this hysteria and hyperbole that I see in the global media and some domestic media in the United States about NATO is unwarranted.

The United States, President Trump's made clear he supports NATO. We're going to remain in NATO, he's made clear.

(END VIDEO CLIP)

BRUNHUBER: Meanwhile, NATO's Secretary General has reiterated his belief that the U.S. remains completely committed to NATO.

Ukrainian officials say three people were injured in a massive drone attack on the southeastern city of Dnipro Friday. The city's mayor says no one was killed and there was minimal damage.

In Kharkiv, at least two people were killed and another 32 injured during a Russian drone attack on Thursday. Russia has targeted Ukraine's second largest city almost nightly over the past week.

[03:25:08]

Donald Trump says he expects to welcome Benjamin Netanyahu to the U.S. as soon as next week. The U.S. president says he spoke with the Israeli prime minister on Thursday as Israel has launched a major new expansion of its military operation in Gaza.

Here's what the president told reporters aboard Air Force One.

(BEGIN VIDEO CLIP)

TRUMP: Gaza is a very important thing. It's been under siege for many, many years. It's a shame.

A lot of people die in Gaza. Gaza's been a place we haven't. A lot of people die.

A lot of bad things happen in Gaza. We'll see what we can do about it.

(END VIDEO CLIP)

BRUNHUBER: Meanwhile, a senior Hamas source tells CNN the group has rejected Israel's latest proposal for a temporary ceasefire in Gaza. The plan called for a 40-day pause in fighting in exchange for the release of 11 living hostages and half the 35 deceased hostages.

All right, still to come, how U.S. auto dealers and consumers are trying to deal with the fears of higher prices linked to Trump's tariffs.

Plus, Canada's leader slaps counter tariffs on some American automobile imports. We'll have a report from Toronto coming up. Please stay with us.

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[03:30:00]

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BRUNHUBER: Welcome back to "CNN Newsroom." I'm Kim Brunhuber. Let's check today's top stories.

Donald Trump's new tariffs could cost the average U.S. household more than $2000 per year, according to the Tax Foundation, a nonpartisan group. Global markets fell sharply following the tariff announcement, fueling fears of a global recession. Canada announced a reciprocal 25 percent counter-tariff on vehicles imported from the U.S., with some exceptions.

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 must be held within 60 days.

President Trump says he's expecting a visit from Benjamin Netanyahu. The Israeli Prime Minister could visit the U.S. as soon as next week. It comes as Israel has launched a major expansion of its military campaign in Gaza, aimed at seizing large areas of land.

Hundreds of American auto workers are already facing the fallout from President Trump's tariffs. Automaker Stellantis has paused production at some of its assembly plants in Canada and Mexico because of the new tariffs.

900 U.S. hourly employees who make auto parts for the factories are being temporarily laid off. They work at facilities in the Midwest, two in Michigan, and three in Indiana. Stellantis makes vehicles under 14 brands, including Chrysler, Dodge, Jeep, Maserati, and Alfa Romeo.

The Trump tariffs are expected to push car prices significantly higher, and that has some American consumers looking to buy now instead of later. CNN's Omar Jimenez caught up with some of them in Michigan.

(BEGIN VIDEOTAPE)

GLASSMAN: I've had my share of turmoil over the years, and so that's why I'm comfortable that this, too, will be something that we'll be able to deal with and overcome.

OMAR JIMENEZ, CNN CORRESPONDENT (voice-over): But George Glassman knows it won't be easy. He runs Glassman Automotive Group in Southfield, Michigan, outside Detroit, the self-described auto capital of the world.

GLASSMAN: So my father started the business in 1969. We haven't seen anything, in my opinion, this disruptive as long as I've been in the business.

JIMENEZ (voice-over): His current inventory of cars is pre-tariff, unaffected. But that won't last.

JIMENEZ: Do you anticipate having to raise prices on your vehicles when we get to that point?

GLASSMAN: Well, we're not going to have a choice. Ultimately, a decision has to be made by the manufacturers. How much are they willing to absorb of the tariff?

JIMENEZ (voice-over): Which would affect prices for people like Laura Downing.

LAURA DOWNING, RECENTLY LEASED A CAR: I have huge concerns about the tariffs and all the different ways that prices are going to go up, not just as related to, you know, automobiles and auto parts, etc.

JIMENEZ (voice-over): As she spoke with us, she had just leased a new car.

DOWNING: With auto parts going up, I just figured I might as well be in something that's newer that I'm not going to need a lot of maintenance on.

JIMENEZ (voice-over): The Trump administration also plans to put tariffs on car parts by May.

DOWNING: I don't know how much I can say, but I mean, you know, I think the entire thing is bad politics. It's not good for anybody, even much further outside of just auto parts. You know, it's going to hurt a lot of people.

JIMENEZ (voice-over): And she wasn't the only one thinking tariffs.

JIMENEZ: So that was on your mind when you came in.

DENISE HOLIDAY, SOUTHVILLE, MICHIGAN RESIDENT: That was the main reason. JIMENEZ: Really?

D. HOLIDAY: Yes.

ROBERT HOLIDAY, SOUTHVILLE MICHIGAN RESIDENT: Everybody's saying that the prices on automobiles are going to go up. We're currently on fixed income.

D. HOLIDAY: Yes, we're retired.

R. HOLIDAY: We're retired.

D. HOLIDAY: We thought we better come now.

R. HOLIDAY: Yes.

D. HOLIDAY: Well, we still can. And we still have our Social Security.

[03:35:02]

JIMENEZ (voice-over): Both the Holidays and Downing are part of what Glassman described as somewhat of a dash of customers in recent weeks, trying to find something to drive before prices drive up.

GLASSMAN: You've got high interest rates. You've got food costs that are high. And now their second largest purchase next to a home is also in play.

R. HOLIDAY: At least two of our friends that we know of are out as we speak.

D. HOLIDAY: Another one, she called. She was on her way to the dealership when she called us.

JIMENEZ (voice-over): But after this window of opportunity for customers comes reality.

GLASSMAN: Regardless of the make, the model, every single manufacturer will be affected by the tariffs.

JIMENEZ (voice-over): Even with the roadblocks, Glassman sees a way through.

GLASSMAN: Detroit has been through so much over the years. There have been ups and downs, and the automobile business and its dealers have been resilient. The thought of building plants and having more manufacturing jobs here in the States is admirable, but it doesn't happen overnight.

JIMENEZ: And that last point is part of why the United Auto Workers Union actually endorsed these tariffs, hoping it would bring more auto production back to U.S. plants. But even then, it would take some time. And then for buyers, you can still see people are coming in trying to take advantage of the prices and the moment we're in now before these tariffs really take deep root. But there's also another market to keep an eye on. That's the used car

markets. Because as prices go up on new cars, people might start considering used cars more.

Well, as more people start considering used cars, prices could then go up because of demand. So people like those in charge of these dealers, keeping an eye on a number of variables in the opening hours of these tariffs.

Omar Jimenez, CNN, Southfield, Michigan.

(END VIDEOTAPE)

BRUNHUBER: In response to the tariffs, Canada has agreed to strengthen its trading relationship with Germany. Prime Minister Mark Carney also announced a 25 percent counter tariff on some vehicles imported from the U.S. into Canada. CNN's Paula Newton has more from Toronto.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: Prime Minister Mark Carney had a strong indictment of the Trump administration's actions. But there was restraint, in fact, on the counter tariffs.

There were $60 billion worth on the table. Instead, it will only be 25 percent on American cars coming into Canada. And only those that do not comply with the trade agreement already on the table, once again negotiated by President Trump during his first term.

But I want you to listen now to Prime Minister Mark Carney talking about what's ahead. Listen.

MARK CARNEY, CANADIAN PRIME MINISTER: Our trade becoming closer and closer together. That is over. I mean, we saw that that was ending a while ago, it's now emphatic. I think the world is learning that that is over.

That creates real challenges for us. We're not sugarcoating it. We're absolutely clear about that.

It also, though, creates an enormous opportunity for a country like Canada, which has virtually everything that the world wants, has a lot of things that the U.S. wants, and they're going to find out how much they want it.

That is a not-so-subtle warning that if he becomes Prime Minister Mark Carney with an election here in Canada on April 28th, he wants to completely renegotiate that deal with the United States, not just based on economic priorities, but also on defense and security.

And he has a warning as well on how Canada procures its defense right now, 80 percent of it comes from the United States. He is looking to Europe and beyond, and he is saying to the United States he wants that in any agreement that he negotiates, again, if he becomes Prime Minister.

Paul Newton, CNN, Toronto.

(END VIDEOTAPE)

BRUNHUBER: Mexican President Claudia Sheinbaum unveiled a broad economic plan on Thursday in the face of President Trump's tariffs. She says she's focused on strengthening domestic production of steel, aluminum, cars, pharmaceuticals, agriculture and other sectors.

President Sheinbaum touted the fact that Mexico is exempt from the new reciprocal tariffs announced this week. She's vowing to continue conversations with the U.S. based on cooperation and mutual respect. Here she is.

(BEGIN VIDEO CLIP)

CLAUDIA SHEINBAUM, MEXICAN PRESIDENT (through translator): Well, it has to do with the good relationship we've built between the governments of Mexico and the United States, which is based on respect, with respect for sovereignty, collaboration and coordination, but with respect for Mexicans and national sovereignty.

(END VIDEO CLIP)

BRUNHUBER: So as the world grapples with the aftermath of President Trump's tariff plan, one of the big questions is, will it pay for them? CNN's Richard Quest explains where consumers will feel the most impact from the tariffs.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: It is easy to think of tariffs on the big stuff, the automobiles, the dishwashers and the like. But the truth is, most of us will feel our tariffs at places like this, the Heavenly Deli, where you buy your food and drink every single day.

Just look. Tariffs.

[03:40:03]

A bottle of San Pellegrino. It comes from Italy, within the E.U.

Now, I know this costs about five bucks here. Tariff of 20 percent from the E.U. So you're talking about roughly a dollar or so.

Who's going to pay the dollar? The importer passes it to the distributor, the wholesaler, the good lady at the desk, and passes it on to me.

You then start looking at other things. Licorice from Australia.

Now, there's an election in Australia at the moment. Anthony Albanese is facing the public. How is he going to explain how this $7.99 licorice is now suddenly 10 percent more expensive? What's he going to do to the sales? You've got to buy a new charger. You can never have enough chargers.

Of course, Heavenly sells chargers. The charger and the cable come to about 20 bucks.

But these come from China. And there is a 34 percent tariff from China. 34 percent of 20 bucks.

Do the mathematics yourself.

Suddenly, this becomes more expensive.

And then you've got the little stuff. The ghost pepper spicy chicken flavor from Malaysia. It costs $2.99. It's described as spicy madness.

How about how much madness once the 24 percent tariff goes on and the $2.99 goes up? As it says here, flaming spicy madness.

Are they talking about the food or the tariff? Whichever way you look at it, everything's going up in some shape or form. And it really is just a question of who is going to eat the cost.

Richard Quest, CNN at the deli in New York.

(END VIDEOTAPE)

BRUNHUBER: Picking up the pieces. Still ahead, a series of deadly storms leaves a trail of devastation across the central U.S.

And Greenland gets another high-profile guest. Denmark's Prime Minister visits her country's territory and issues a strong message to the U.S. We'll tell you what she said next. Stay with us.

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[03:45:00]

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BRUNHUBER: Denmark's Prime Minister has a message for the U.S. You cannot 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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BRUNHUBER: Minister Frederiksen made that statement during a trip to Greenland, an autonomous territory that's part of Denmark. President Donald Trump has called for making Greenland part of the United States. Vice President J.D. Vance visited the island last week and claimed that the U.S. would do a better job of protecting Greenland, but Frederiksen rejected that and said 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 said Rubio affirms a strong relationship between the two countries.

At least seven migrants are dead after their boat sank near the Greek island of Lesbos. The Greek Coast Guard rescued 23 people, but it's not clear how many people were on the boat. A boy and girl are among the dead.

Greece is a common target for refugees hoping to reach Europe, many of them undertaking a treacherous sea crossing.

Dozens of powerful tornadoes ripped through the central U.S., killing at least seven people. Houses were leveled across Arkansas, Mississippi and Tennessee with severe storms expected to last until Saturday.

The storms are also bringing heavy rain and flash flooding. More than a dozen water rescues took place in Nashville. Authorities warned people to prepare for more tornado and flooding alerts in the days ahead.

The tornadoes left behind a trail of destruction, leaving people to pick up the pieces. CNN's Nick Valencia spoke to people in the town of Selmer, Tennessee.

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NICK VALENCIA, CNN CORRESPONDENT (voice-over): This is all that's left. After relentless and severe storms ripped through the Midwest and south overnight, spawning dozens of tornadoes that crushed homes, flipped over cars and killed at least seven people.

UNKNOWN: When the first one touched down, we watched it come through, but we was hoping it missed our house, but as soon as we drove up, we realized we had nothing left.

VALENCIA (voice-over): The total number of tornadoes not yet known, but here in western Tennessee, emergency management told CNN there were 35 tornado warnings.

GOV. BILL LEE (R-TN): Of this county, once again, this has happened before there's been a tornado here just a couple years ago, but once again, they're facing what's really just a heartbreaking circumstance out there.

JIMMY MOORE, HOUSE DESTROYED IN TORNADO: It's a mess. Unbelievable the damage that's caused by a tornado.

VALENCIA (voice-over): In Selmer, Tennessee, Jimmy Moore says this is the second time his home has been hit by a tornado.

MOORE: We were in it the first time. VALENCIA (voice-over): This time, his daughter, who lives here now

with her children, escaped to a shelter at the courthouse just before the tornado hit the house again, this time destroying it.

[03:50:04]

MOORE: We were glad, though, that they made it to the courthouse. We can replace the house, but the grandkids a little bit harder.

VALENCIA (voice-over): At these newly built apartments nearby, more destruction. Phylicia Secada has only lived here less than a month and luckily wasn't home when the tornado blasted through.

PHYLICIA SECADA, APARTMENT DESTROYED IN TORNADO: We watched the storm come through on the radar and we saw it coming straight through and just kept looking and looking at Facebook and then saw people posting pictures and stuff and realized that this had taken a direct hit.

VALENCIA: Have you ever been through a natural disaster before?

SECADA: No, I'm not from these parts, so no, this is my first time ever. I mean, I'm used to California wildfires and this is different.

VALENCIA: Search and rescue teams are still going through this area to make sure that everyone is accounted for and with a tornado watch in effect through this evening, there is a lot of concern about what that could bring. Local residents here, they call this Tornado Alley and let me give you a sense of what happened here overnight.

They've gone through several tornadoes in the last several years. They're not out of the clear just yet and they're hoping that they can just catch a break.

Nick Valencia, CNN, Selmer, Tennessee.

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BRUNHUBER: Well, coming up after the break, how a boat that flies above the water could help decarbonize the maritime shipping sector. That's next here on "CNN Newsroom."

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BRUNHUBER: A new innovation from the world of professional sailing may lead to a major breakthrough in efforts to tackle carbon emissions. The E-Foiler is the world's first propulsion solution that's both zero carbon and commercially viable, as Max Foster explains.

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MAX FOSTER, CNN ANCHOR (voice-over): Is it a boat? Is it a plane? Well, it's kind of both.

This is the EF-12, an all-electric boat flying above the water using technology inspired by high-performance sailing. It's developed by Artemis Technologies, a Belfast-based firm that's leading a revolution in marine transport.

IAIN PERCY, CEO, ARTEMIS TECHNOLOGIES: I think we are the only solution worldwide in high-speed maritime that you can both practically and economically decarbonize your operations.

FOSTER (voice-over): Iain Percy is a two-time Olympic champion and a veteran of four America's Cup challenges. His extensive expertise in high-performance sailing was crucial in the company's E-Foiler innovation.

FOSTER: Why the hydrofoil? What's the advantage to that?

PERCY: The hydrofoil is that small key that opens a big door because the hydrofoil is really where the drag reduction comes from.

[03:55:08]

We all went on hydrofoils in the 70s and 80s and they were what I call V-hydrofoils. They had no control system. They went up in the air and then there was less foil, so they came back down.

It didn't actually save much drag at all, maybe 20 percent. We're the different, we're an aeroplane wing, effectively under the water.

FOSTER (voice-over): It's that underwater wing, Artemis' E-Foiler, that lifts the hull out of the water, drastically reducing drag. Powered by an electric battery, these vessels are vastly more efficient than conventional diesel-powered boats.

FOSTER: You can see it's pretty choppy out there. There's some wind, but it's completely steady on ship. There's also a sense of flying as well.

FOSTER (voice-over): You may have been on a ferry ride or water taxi. The bumpiness, the noise, the smell of diesel. Well, not this boat.

The Artemis E-F12 vessels will be making waves in ports and harbors across the U.K. and Europe in 2025, competing with conventional diesel boats in a huge challenge.

FOSTER: But what you've done is very high-tech, so how have you kept the prices down?

PERCYl The core technology saves a lot of energy and therefore costs, I'm saying for a typical fast ferry, over 1 million pound sterling a year in fuel savings over the conventional solution. On a pilot boat, between one and 400,000 a year.

I think success for Artemis would see a pretty global, large adoption of these kind of vessels, and I think the real step change is that, for the first time, maritime solutions for kind of equal distance start to be cost-comparative for trains or buses or cars. That's never been the case. That really opens up much more mass adoption of our waterways.

(END VIDEOTAPE) BRUNHUBER: A rare and endangered Malayan tapir cub has been born at a zoo in Malaga, Spain. The mom, Rawah, delivered the cub last Saturday after 13 months of pregnancy. Now a special moment was captured on the zoo's camera.

Tapirs are large plant-eating mammals, similar to pigs but with a short nose trunk. They're native to Southeast Asia. Both mother and calf are healthy, but the little one's sex isn't clear yet.

They're in quarantine under close veterinary care.

Alright, thanks so much for watching. I'm Kim Brunhuber, in Atlanta. "Early Start" with Rahel Solomon is up next.

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