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Donald Trump's Huge 104 Percent Tariff On Chinese Imports Takes Effect; South Korea Seeks Cooperation, Not Confrontation With U.S.; Elon Musk Ramps Up Spat With Donald Trump Trade Adviser Peter Navarro; Two Chinese Nationals Fighting For Russia Captured; At Least 79 Killed, More Than 220 Injured in Nightclub Roof Collapse in Dominican Republic; El Salvador's President To Visit White House Next Week. Aired 2-2:45a ET

Aired April 09, 2025 - 02:00   ET

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

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[02:00:30]

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello and welcome to our viewers joining us from all around the world, and to everyone streaming us on CNN Max. I'm Rosemary Church.

Just ahead:

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They're giving us everything they don't want tariffs on themselves.

(END VIDEO CLIP)

CHURCH: Donald Trump gloats about world leaders desperate to make a deal as sweeping tariffs take effect in dozens of countries.

Ukraine captures Chinese nationals fighting for Russia and now President Zelenskyy is demanding answers.

Plus, rescue workers search tirelessly for survivors after a roof collapses at an iconic nightclub in the Dominican Republic.

ANNOUNCER: Live from Atlanta. This is CNN NEWSROOM with Rosemary Church.

CHURCH: Good to have you with us. Donald Trump has just unleashed the next stage of his global trade war. Two hours ago, dozens of countries and the European Union were slapped with new tariffs ranging from 11 to 50 percent, that's on top of the sweeping 10 percent tariffs implemented Saturday. The new tariffs hit some of America's closest trading partners, which the White House has called the worst offenders, and Trump has saved his strongest ire for China, levying a staggering 104 percent in new tariffs across all Chinese imports.

According to the U.S. Commerce Secretary, about 70 countries have contacted the White House, asking for trade talks. Here's how Donald Trump described those conversations.

(BEGIN VIDEO CLIP)

TRUMP: I'm telling you, these countries are calling us up, kissing my ass. They are -- they are dying to make a deal. Please, please, sir, make a deal. I'll do anything. I'll do anything, sir.

(END VIDEO CLIP)

CHURCH: Kristie Lu Stout joins me now from Hong Kong. Good to see you, Kristie. So, what's been the reaction there to President Trump's massive 104 percent tariff on Chinese imports to the U.S.?

All right, we're clearly having some audio issues with Kristie. We will work on that and get back to her in just a moment.

I do want to turn now to Frederic Neumann in Hong Kong. He is the Chief Asia Economist and co-head of Global Research for the Asia Pacific region at HSBC. Thank you so much for joining us.

FREDERIC NEUMANN, CHIEF ASIA ECONOMIST AND CO-HEAD OF GLOBAL RESEARCH FOR THE ASIA PACIFIC, HSBC: Thank you.

CHURCH: So, U.S. markets closed down Tuesday ahead of Donald Trump's midnight tariff deadline. That came and went without China removing its retaliatory tariffs on the U.S.

So, now President Trump's 104 percent tariff on Chinese imports goes into effect, along with all the other sweeping global tariffs. How will China specifically likely retaliate do you think?

NEUMANN: Well, China has a number of tools at its disposal. Of course, it could raise tariffs on imports from the United States, but China could also broaden the toolbox a little bit.

We saw, for example, China imposing restrictions on exports of critical minerals. Remember, China is one of the key producers of very key minerals and metals that are used in high end electronics, for example, they could restrict these shipments to the United States.

And of course, many American companies have large operations in China, and they could come under closer scrutiny in China in terms of their competition policy, in terms of their presence in the market.

And so, there's a sense here that the Chinese could broaden a little bit the toolbox in terms of retaliation.

CHURCH: And China has said that it will fight to the end and won't back down, and adds that it's not seeing signs Trump wants to have dialog on this.

So, Beijing calls Trump's tariff threads bullying and blackmail. What happens now? Could we see a negotiated deal between the U.S. and China, or has that time passed already?

NEUMANN: We wouldn't rule it out. Remember that this is one of the most important economic relationships in the world for both sides, actually, and you've got to have, essentially, interest in trying to preserving at least some stability.

And so, what we saw during the first Trump administration, that the rhetoric heats up very quickly, but we also reached a deal in the end.

So, behind, you know, the facade, there could be still some contact, some negotiation, and we might be ultimately end up at some sort of a deal in the coming months. So we wouldn't rule it out entirely, but make no mistake, at the moment, the two sides are really hunkering down.

[02:05:15]

CHURCH: And on Tuesday, President Trump defended his tariff proposal, saying the tailored deals would be made with Japan, South Korea and many other nations whose representatives will fly to D.C. to make these deals with Trump.

But with 70 potential countries eager to negotiate, this will take time, won't it? So, why didn't Trump pause the deadline to allow for negotiations and offer some relief to the market turmoil we're seeing?

NEUMANN: Well, perhaps it's a negotiating strategy to raise maximum pressure, raise a sense of urgency here. It's hard to really see exactly what the motivations are, but we have seen, of course, many, many countries send allegations to Washington, D.C., calling up the White House and saying, what can we do to kind of reach a deal here?

Now, you're right, there are many, many countries to be dealt with. This may take several weeks, but and this I think important, the door is still slightly ajar for some rollback at least of these tariffs. And certainly investors globally are latching on to the hope that some of these measures will be watered down. Maybe not with regards to China at the moment, but certainly with regard to very other big trading partners, like Japan, for example, and that would at least bring partial relief to financial markets, and this is certainly what the focus is on right now.

CHURCH: Frederic Neumann, many thanks for joining us. Appreciate it.

Well, Donald Trump says the U.S. and South Korea have the confines of a deal after speaking with South Korea's acting president, a negotiating team from Seoul is heading to the U.S., and the White House says the president is prioritizing deals with South Korea and Japan, two of America's closest allies and trading partners.

CNN's Mike Valerio has an exclusive interview with South Korea's leader who believes he can get Mr. Trump to do something no other leader has been able to do so far, drop the tariffs.

(BEGIN VIDEOTAPE)

MIKE VALERIO, CNN INTERNATIONAL CORRESPONDENT (voice-over): As China's Xi Jinping strikes back against steep U.S. tariffs, vowing to fight them eye for an eye. How are you? It's so good to meet you.

South Korea's leader says in an exclusive interview with CNN. He is looking for a deal.

VALERIO: Acting President Han, what is your message to President Trump?

HAN DUCK-SOO, SOUTH KOREAN ACTING PRESIDENT: First of all, we will cooperate with the United States and President Trump to make sure that we can find some of the solutions. You know, to arrive at the win-win situations.

VALERIO (voice over): Han Duck-soo, South Korea's head of state, says cooperation and negotiation, not confrontation, will be South Korea's playbook. A strategy he says driven by deep ties to the U.S. forged during the Korean war.

Today, nearly 30,000 U.S. troops are still stationed in South Korea. And he's betting friends with this much history. Can talk this through.

VALERIO: You do anticipate that this 25 percent tariff level will not stay. That's your anticipation?

HAN: Depending on the negotiations.

VALERIO: 25 percent, though, that's pretty steep for friends for generations.

HAN: Well, it's a pity because we are evaluated in that way. But I think that that kind of different assessment can always happen in this kind of situations.

VALERIO (voice over): South Korea's auto industry is a success story, in part because of tariffs. Seoul National University economics professor E. Kyung (ph), writing: South Korea's high tariffs on imported cars, protected Hyundai, helping it to grow into a global powerhouse exporter.

In this tariff trade war, economists fear parts and products from South Korea could skyrocket in price, harming jobs and assembly lines on both sides of the Pacific.

Han remains optimistic, speaking with U.S. President Donald Trump for the first time in a phone call Tuesday morning. President Trump echoing the enthusiasm for now, posting on Truth Social, the two leaders had a, quote, great call and, quote, we have the confines and probability of a great deal for both countries, Trump wrote.

HAN: I think if we really try to work very hard and you know, exchange our informations on interpreting and assessing in the right way, in this case with the United States, I think the situations can be improved.

Mike Valerio, CNN, Seoul. (END VIDEOTAPE)

[02:10:03]

CHURCH: Boys will be boys. That's how the White House is describing the spat between two of President Trump's top advisers, how that angry back and forth is unfolding. That's next.

Plus, Ukraine says it has captured two Chinese nationals fighting for Russia. We'll have the latest on the conflict, and Ukraine's calls for international support.

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CHURCH: The spat over the White House tariff plan is heating up between Elon Musk and President Donald Trump's senior trade advisor Peter Navarro after Musk criticized the new tariffs, Navarro dismissed the Tesla CEO as a car assembler, not a car manufacturer. Then Musk called Navarro, "A moron and dumber than a sack of bricks."

[02:15:12]

CNN's Clare Duffy picks up the story.

(BEGIN VIDEOTAPE)

CLARE DUFFY, CNN BUSINESS WRITER: Right, the Press Secretary has tried to write this off as boys being boys, but what is really striking about this feud is that you have Elon Musk, who has been one of President Trump's most fervent supporters, one of his closest advisers, who is now breaking from the White House when it comes to this major tariff policy. Navarro was essentially hinting there that Musk must be opposed to tariffs because Tesla assembles cars in the U.S. rather than he claims being a true U.S. manufacturer.

Musk has pushed back on that, calling Navarro a moron, saying his claims were demonstrably false, and claiming that Tesla has the most American made cars and the highest percentage of U.S. content.

And indeed, Tesla has ranked at the top of Cars.com American made index since 2021, that is based on criteria things like assembly location where parts are made, engine origin, transmission origin, and U.S. manufacturing workforce.

But even Tesla is not immune from these tariffs. And Musk himself has acknowledged that, saying the impact could still be significant.

And I think that really is at the heart of this issue, and why you're seeing so much uncertainty, so much concern in reaction to these tariffs is even a company like Tesla that proudly proclaims that it has quite a bit of U.S. manufacturing is not immune to these tariffs.

Clare Duffy, CNN, New York.

(END VIDEOTAPE) CHURCH: U.S. Middle East envoy Steve Witkoff will be at a U.S. Iran meeting in Oman on Saturday. Witkoff will lead what the U.S. State Department insists is only a meeting and not a negotiation.

On Monday, President Donald Trump said that direct talks are underway between the two countries on Tehran's nuclear program, but Iranian officials say the discussion will be indirect, mediated by Oman.

Whatever the case may be, the White House press secretary had this to say.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: When it comes to Iran, the president has reimposed crippling sanctions on the Iranian regime, and he's made it very clear to Iran they have a choice to make. You can strike a deal with the president, you can negotiate, or there will be hell to pay.

(END VIDEO CLIP)

CHURCH: Ukrainian President Volodymyr Zelenskyy says two Chinese nationals fighting in the Russian army have been captured. He said it happened in the Donetsk region in eastern Ukraine. Now Zelenskyy is looking to international allies, as well as Beijing for their response to the matter.

CNN's Fred Pleitgen has more.

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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Ukrainian President Volodymyr Zelenskyy says that Ukrainian forces were involved in a battle engagement with six Chinese fighters in the Donetsk Oblast in eastern Ukraine, and that the Ukrainians were able to capture two of those Chinese individuals.

Now, the Ukrainians say that they have evidence that these individuals are Chinese. Zelenskyy saying that they captured the passports, other documents, and even the credit cards of these two individuals, indicating that they are Chinese nationals.

The Ukrainians also saying that they believe that there are more Chinese fighters on the ground fighting on the side of Russia.

However, a source telling CNN that so far, there is no indication that all of this is state sponsored. Of course, we do know that on both sides of the front line, on the Ukrainian side and on the Russian side, there are foreign fighters who are participating in some of these battles.

However, the Ukrainians say they believe that this could be a different quality. The Ukrainians, of course, have said that they are up against, for instance, North Korean fighters, but they say that that is happening in the Kursk Region, so on Russian territory, but these Chinese fighters were actually caught on Ukrainian territory involved in military action there.

The Ukrainian's Volodymyr Zelenskyy saying that this shows that Russian President Vladimir Putin is not interested in an immediate cease fire to end the fighting in Ukraine. And they're also saying that the United States and the Trump administration needs to get wise as to what Vladimir Putin is up to.

However, in all of this so far, we have not yet actually heard directly from the Russians and what they have to say to this. The Ukrainians also saying that they want answers from the Chinese.

The Ukrainian foreign ministry saying that it will summon the Chinese charge d'affaires in Kyiv. And so far, it has not gotten an answer as to why Chinese troops are on the ground in Ukraine.

Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

CHURCH: Dozens are dead and countless more injured after the roof of a nightclub collapsed in the Dominican Republic. The latest details on this tragedy after the break.

Plus, CNN gets an exclusive look inside El Salvador's notorious CECOT prison, where the U.S. is sending migrants it claims a gang members. Back with that and more in just a moment.

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[02:24:40]

CHURCH: A staggering 104 percent tariff is now in effect on all Chinese goods coming to the United States. It's the latest and largest escalation of President Donald Trump's global trade war. China, for its part, is vowing to retaliate with its own countermeasures on American goods.

Kristie Lu Stout joins me now live from Hong Kong. Good to see you, Kristie. So, what's been the reaction there to President Trump's 104 percent tariff on Chinese goods?

[02:25:07]

KRISTIE LU STOUT, CNN CORRESPONDENT: You know, Rosemary, there has been a sense of deep concern and deep uncertainty.

In fact, recently today, CNN spoke with a Chinese factory owner in Vietnam, a Vietnam also being subjected to these new reciprocal tariffs this day, and he was sharing stories of what his clients are telling him that they have sensing pessimism and deep panic, and they are also telling him that they have nowhere to go to manufacture their products because of the reach of Trump's tariffs.

The U.S. President Donald Trump has gone ahead. He has forged ahead with these reciprocal tariffs on dozens of countries around the world, including Vietnam, as well as that astonishing total tariff rate of at least 104 percent on China. This after Beijing refused to meet Trump's deadline demand and refused to remove its own retaliatory tariffs.

We've been monitoring the markets this day, if you can bring up the dynamic market data for you, you'll see a number of red arrows on your screen, with the exception of Shanghai, and I'll explain that in just a moment.

But the Nikkei down 3.6 percent here in Hong Kong, the Hang Seng losing six tenths of one percent. The Seoul KOSPI down almost two percent. The Australian main index losing 1.8 percent.

Shanghai gaining eight tenths of percent because state firms there in China have vowed to buy stocks to stabilize the market, and perhaps also buoyed by those comments that we heard from the Chinese Premier saying that Beijing has ample policy tools to fully offset the shock of these tariffs from Donald Trump.

We're also monitoring U.S. features, and if we could flash that up on the screen for you, you'll see when markets in the United States open just a couple of hours from now, it's going to be a down day on Wall Street across the board for the Dow, NASDAQ, S&P 500.

Look, Trump is facing blowback from the markets and from business leaders all around the world. U.S. officials say they're open to talks, and in fact, they are talking to, or planning to talk with a number of economies here in Asia, including South Korea, including Japan.

But this is what Donald Trump had to say about China in particular. I want to share with you this Truth Social post that he posted on Tuesday, the U.S. president saying this on China. "China also wants to make a deal badly, but they don't know how to get it started. We are waiting for their call. It will happen!"

But let me tell you, Rosemary, China's officials, they are not taking it. We heard again from officials, time and time again, they're using language like they're going to fight until the very end. Back to you.

CHURCH: And Kristie, China's retaliation against Trump's tariffs is more forceful now than drawing Trump's first term. Why is that?

STOUT: It is a much more forceful, muscular response than before, and some people have said it's because the leadership in Beijing believed that they could actually win the trade war with the United States, because it has using Trump speak the cards to play the game.

I want to share with you excerpts from this online post that's been making the rounds. This is shared late on Tuesday by senior Xinhua, a state run media editor, who said these are the possible countermeasures, the tools that China has at its disposal to counter the Trump tariffs, and they include more tariffs on U.S. agricultural products like soybeans, like sorghum, a ban on U.S. poultry, a pause on fentanyl cooperation, and curb or ban on U.S. movies, as well as a curb on U.S. services, services like finance, like law, like consultancy, as well as a probe on U.S. firms, I.P. gains in China.

All this, Rosemary, signals what China means when we hear them say it will fight Trump's tariffs until the end. Back to you.

CHURCH: All right. Kristie Lu Stout bringing us that live report from Hong Kong. Appreciate it.

At least 79 people are dead, including former major league baseball players, after the roof of a nightclub in the Dominican Republic collapsed in the early hours of Tuesday. CNN Contributor Stefano Pozzebon brings us the latest from Santo Domingo.

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STEFANO POZZEBON, CNN CONTRIBUTOR: The search and rescue operations here in Santo Domingo are continuing throughout the night, as you can see behind my back, the teams are working hard with no stop, and there are at least three major cranes that are being used throughout the night to remove the biggest of the debris that are still on the top of the dancing floor because the rooftop of the Jet Set in Santo Domingo crashed on the top of the dancing floor in the early hours of this Tuesday.

Dozens of people have been pronounced dead, but almost 24 hours since the tragedy occurred, the teams are still not giving up their hopes, and they're still trying frantically combing through the debris to find as many people alive as quickly as possible.

And in the meantime, here in the area surrounding the Jet Set, you can see a community coming together.

[02:30:03]

We have seen dozens, hundreds of people coming here to pay their respects, to ask for information. This Jet Set Nightclub was an institution here in Santo Domingo. Among the victims, unfortunately and tragically, are politicians, former baseball players, friends, family, relatives, and this is why it is a tragedy that is really going deep, hitting the soul of this nation.

For CNN, this is Stefano Pozzebon, Santo Domingo.

(END VIDEOTAPE)

CHURCH: Next week, El Salvador's President Nayib Bukele is scheduled to travel to the U.S. to meet with U.S. President Donald Trump. They're expected to discuss their agreement for the U.S. to send deported migrants to El Salvador's CECOT mega prison. Bukele has been an outspoken partner, posting video to social media of the migrants Trump claims are members of Venezuelan or Salvadoran gangs.

Legal representatives for some of these men say they have no ties to gangs, including the man the Trump administration admits to sending to CECOT by mistake. Well, aside from the video, Bukele has posted of the deportees arrival, not much has been known about the conditions inside CECOT prison until now. The director of the notorious prison gave CNN's David Culver an exclusive tour.

(BEGIN VIDEOTAPE) DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT: So we're going to go into Sector IV right here. But if you look just straight down there at the very end, that's Sector VIII. That's where the deportees are being held. We cannot go into that sector. When I asked why, he says it's not part of this approved tour. But we will go into Sector IV right now. And he said, we're going to notice a difference from the last time we were here.

The last time we were here, the director tells me there were roughly 80 or so people inside each of the jumbo cells. This time he said, notice the numbers, it's a bit more crowded. He suggests a bit more than a hundred.

[Foreign Language]

Why are there more people here?

[Foreign Language]

He says, the state of exception, essentially, the state of emergency that's been declared under President Bukele going back to 2022 will not end until the last gang member has been taken from the communities and brought here to CECOT.

[Foreign Language]

He said, everybody's got the same conditions. It doesn't matter where you are, including Sector VIII.

This is the place where El Salvador says they keep the worst of the worst.

[Foreign Language] deportees here.

(END VIDEOTAPE)

CHURCH: A British royal makes a rare visit to the U.K. Still to come, the latest on Prince Harry's fight against the British government's decision to downgrade his taxpayer-funded security. We'll have that and more after the break.

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[02:37:53]

CHURCH: Welcome back, everyone. Prince Harry made a rare appearance in the United Kingdom amid a legal battle with the British government. The Duke of Sussex has been fighting a decision to downgrade the level of taxpayer-funded security he and his family receive when in the U.K. CNN's Salma Abdelaziz has more from London.

SALMA ABDELAZIZ, CNN CORRESPONDENT: We weren't sure if we were going to see him today, but Prince Harry made a surprise appearance. Now, he very rarely shows up in the U.K. and that's because Prince Harry says he fears for his safety. That's exactly why he has shown up at the Royal Courts of Justice in London today for the next stage in a legal battle that has drawn out for nearly three-and-a-half years now. He's seeking more security and protection for his family.

Now, all of this started in 2020 when Prince Harry and his wife Megan stepped down from their roles as full-time working royals. At that point, his taxpayer-funded protection was downgraded from the highest level of security to a case by case basis. His lawyer in court today is arguing that decision was unfair and that Prince Harry was singled out, in her words, for inferior treatment.

Now, the appeal will mostly be held in open sessions, much of it live streamed for the public to see. This is a deeply personal case for Prince Harry who says his family can't visit the U.K. because of his fears around their safety. Now, a judge is expected to issue a decision in writing at a later date.

Salma Abdelaziz, CNN, London.

CHURCH: Well, shining bright like a rare diamond, a newly discovered precious stone was the star of an Abu Dhabi exhibition on Tuesday. At 10 carats, the Mediterranean blue diamond boasts a $20 million price tag. Blue diamonds are some of the rarest in the world, and this one is no exception. It was discovered in a South African mine, under study for six months until its debut.

[02:40:00]

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QUIG BRUNING, SOTHEBY'S HEAD OF JEWELS, NORTH AMERICA AND EMEA: When you think about all the blue diamonds, the pinnacle of those are vivid blue diamonds. You think of all the vivid blue diamonds, the pinnacle of those are diamonds over 10 carats. And so, really you're at the peak of the peak of diamond rarity.

(END VIDEO CLIP)

CHURCH: Next month, it will be the crown jewel of Geneva High Jewels Auction.

I want to thank you so much for joining us. I'm Rosemary Church. "World Sport" is coming up next. Then I'll be back at the top of the hour with more "CNN Newsroom." Do stick around.

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