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Trump Pauses Most Reciprocal Tariffs, Hikes China's Further; Markets Soar After Trump Announces Tariffs Pause; Top Military General "Missing In Action" Sparks Speculation In China; Incoming Chancellor Unveils Coalition Amid Tariff Turmoil; Israeli Strike On Gaza Apartment Building Kills At Least 23; Nightclub Roof Collapse Kills At Least 184 In Dominican Republic, Including Former MLB Players; Coffee Prices Expected to Spike as Tariffs Rise; Monitoring Orca Populations Using A.I.; Bolivia Hit with Intense, Deadly Flooding. Aired 1-2a ET

Aired April 10, 2025 - 01:00   ET

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

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[01:00:24]

JOHN VAUSE, CNN ANCHOR: It was all part of their cunning plan. Ahead on CNN Newsroom.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: President Trump has a spine of steel he will not break.

(END VIDEO CLIP)

VAUSE: Tuesday's president with the spine of steel blinks first in his global trade war. But wait.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This was his strategy all along.

(END VIDEO CLIP)

VAUSE: Regardless of why. A 90-day pause for tariff talks said stocks soaring.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The second best performance for the Nasdaq and the highest point gain for the Dow Jones industrials.

(END VIDEO CLIP)

VAUSE: But not high enough to recover losses caused by days of Trump's tariff turmoil.

UNIDENATIFIED MALE: Live from Atlanta. This is CNN Newsroom with John Vause. VAUSE: In the end, the U.S. President blinked with the world economy

an open rebellion with the bond market on the verge of a meltdown not seen since the 2008 global financial crisis, and facing a potential financial disaster entirely of his own making, President Trump hit pause, announcing most of his aggressive new tariffs would be on hold for 90 days, despite multiple senior White House officials repeatedly insisting there would be no turning back, no negotiations, no delay.

But fears of a meltdown in the bond market seem to be the main reason for the sudden change of course. The president saying he was aware some were getting queasy and yippee because of the chaos.

Well, this is only a pause and not an end to the trade war. Wall Street rallied, but the best day in 16 years for U.S. stocks was not good enough for shares to recover all the losses caused by days of tariff turmoil.

Let's take a look at the futures now. The U.S. Futures all pointing downwards to an open a few hours from now. The Dow by a third of 1 percent, S and P 500 down by three quarters of 1 percent. The Nasdaq down by one and a quarter percent. That's the view at opening a few hours from now.

President Trump says the decision to suspend tariffs was heartfelt to avoid hurting countries, which he said did not need to be hurt, effectively narrowing an unprecedented trade war with the rest of the world. Now it's a fight with China, which is not exempt from the pause, but which was exempt from the pause rather, and was hit by another increase in U.S. tariffs now at a staggering 125 percent. That's after China raised retaliatory tariffs on U.S. goods to 84 percent.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: They're all calling how do we do this? They all want to make a deal. Somebody had to do what we did. And I did a 90-day pause for the people that didn't retaliate because I told them if you retaliate we're going to double it. And that's what I did with China because they did retaliate. So we'll see how it all works out. I think it's going to work out amazing.

(END VIDEO CLIP)

VAUSE: Let's take a look at the Asia Pacific markets. Green across the board. The Nikkei up by 8 and half -- 81 2 percent. Hang Seng in Hong Kong up by 1 and more than 1 a half percent. Shanghai up by almost 1 percent, Seoul up by 3 and a quarter and 3 quarter percent there as well.

Let's get lighter Beijing. Steven Jiang is standing by. So Steven, about a year ago the Biden administration was trying to reassure China had no interest in decoupling the two economies. That now seems to be a very real possibility.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right. The Chinese so far have not specifically responded to the latest, latest Trump tariff on Chinese imports. And so a lot of people wouldn't wondering are they going to take a breath or are they going to wait for a while or even trying to arrange a phone call between the two leaders as Trump suggested himself, or are they going to feel compelled again to respond in kind?

Now, even though Trump has claimed China is panicking, how they're desperate to talk to him, just don't know how to start a conversation. A lot of observers though have pointed out China's response so far has been quite deliberate and calibrated, really hitting back at Washington where things will sting. And they think China has been studying Trump for a long time and watching very closely how he handles other trading partners.

And the conclusion here in Beijing seems to be concessions and buy more pressure and leverage is the only language that Trump understands and respects. So that's why it's very difficult to see at this juncture how Xi Jinping, the Chinese leader, is going to back down from all of his countermeasures, especially with Trump singling out China. That seems to be reinforced the notion here that the ultimate strategic goal of all the tariffs is to contain and suppress China.

So the more likely scenario now is going to be China standing firm, absorbing pressure while trying to let Trump overplay his hands.

Now, just a short while ago, as you mentioned, the additional 84 percent Chinese tariffs on American imports have taken effect.

[01:05:05]

And that of course is only part of the retaliation packages we have seen from Beijing in the past few days. Other measures including -- putting more American businesses on their unreliable and export control lists and targeting more American companies for investigations. And not to mention the latest developments being the Chinese government warning Chinese tourists and Chinese students about going to the U.S. but perhaps more importantly, what they've been doing here is are focusing on, quote, unquote, doing their own things.

Well, that means they're really trying to redouble their efforts to rewire this economy and its trade ties. We have seen even more state investments in these key industries, AI, robotics and quantum computing trying to free China from the so called American chokehold.

And of course they've also been trying to pivot the export markets of Chinese goods to other places outside the U.S., Southeast Asia, Latin America, other so called global south countries. And perhaps more importantly, they're really trying to drive up domestic consumption to transform their growth model.

Now all of this of course going to take time, but a lot of observers have pointed out when it comes to having their people endure pain, at least short term pain, the Chinese again are probably at an advantage because of their authoritarian system and their top down power structure. John, as you know, Xi Jinping himself has told young Chinese people to quote, unquote, learn to eat bitterness. John. VAUSE: It is one of the best sayings from China. Eat bitterness. It says so much. Steven, thank you. Steven Jiang live for us there in Beijing.

To New York now and Danny Russel, a vice president at the Asia Society Policy Institute and a former Korean diplomat who advised U.S. President Barack Obama on re engagement with the Asia Pacific region. Danny, thank you for being with us.

DANNY RUSSEL, VICE PRESIDENT, ASIA SOCIETY POLICY INSTITUTE My pleasure. Thanks John.

VAUSE: So it's important not to lose sight of the fact that the world's biggest and second biggest economies are still locked in an escalating trade war. I want you to listen to the U.S. President Donald Trump speaking Wednesday. Here he is.

(BEGIN VIDEO CLIP)

TRUMP: China wants to make a deal. They just don't know how quite to go about it. You know, it's one of those things that are not quite they're proud people and President Xi is a proud man. I know him very well. And they don't know quite how to go about it, but they'll figure it out.

(END VIDEO CLIP)

VAUSE: So putting the patronizing tone to one side, is there anything to indicate that Beijing is even willing to negotiate at this point? It seems they've been preparing for a fight since they were hit by tariffs during Trump's first term.

RUSSEL: Well, the Chinese have said we are prepared to negotiate, but we're also prepared to fight. It depends on how we're treated by the Trump administration. And right now their biggest question is not how to negotiate. Of course they know how to negotiate. It's who do they negotiate with. They've had a lot of trouble communicating with Trump and with the China hawks that surround Trump.

Their bigger question, John, is what does Trump want? They genuinely don't understand what the end game is for the Trump administration and for Donald Trump himself, unless it is to crush China, to undermine China.

VAUSE: And when tariffs reach this level north of 100 percent, where's the off ramp here? One side's got a blink, right?

RUSSEL: The fact that he paused the tariffs on the rest of the world at a moment when the markets were going straight down, his billionaire cronies were screaming bloody murder, tells the Chinese that the market is Trump's Achilles heel.

VAUSE: China is now reducing the impact that year of tariffs will have on its economy, as Bloomberg reports, by devaluing its currency, which effectively makes Chinese exports cheaper to the rest of the world. The value of the RMB is determined by a managed flow. It goes up or down within a limit which is set each day by the central bank there. This is one of the many ways, along with quarantine, quotas and controls rather than quotas, bunch of other non-tariff measures which China has, you know, used to cheat, if you like, at least bend WTO rules.

So in many ways, Trump is right when he says they've been ripping off the United States in some ways as well as everyone else.

RUSSELL: Well, I'd make two points, John. One is, and I'm absolutely not a banker, so my knowledge of exchange rates is pretty limited. But the impression that I have is that China is doing a very soft devaluation, that they see a lot of risk if they are seen as actively and sizably manipulating their currency, particularly if they have any hope of someday making the RMB convertible global currency, which is an open question.

But there's no question that China has for many years been gaming the system, taking advantage of the free markets and the openness of the west and of the United States.

[01:10:08]

But if that is the problem, Trump's 125 percent tariffs and his chest pounding bravado is not the solution.

VAUSE: And all the chaos, the confusion, the hit to the bond market, the confidence, you know, which has been lost in the U.S. economy, trillions of dollars wiped off the value of global markets apparently is all part of a cunning plan. Here's the U.S. Treasury Secretary revealing details of a conversation he had with President Trump.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, U.S. TREASURY SECRETARY: He and I had a long talk on Sunday and this was his strategy all along. And that, you know, you might even say that he goaded China into a bad position.

(END VIDEO CLIP)

VAUSE: Even if that is true, it would seem there are better ways to address a trade imbalance which do not involve risking a second or a global recession, rather.

RUSSEL: Yes, that's an understatement. Look, I mean, I think that most countries will welcome the 90-day stay of execution if it lasts. But the whiplash from these constant zigzags and flip flops create the kind of uncertainty that companies hate, that governments hate. And the administration's blunt force tactics, its heavy handed tactics against allies, have really rattled those governments and what they're seeing in the sudden reversal.

But the backing down by Donald Trump today is damage control following the market meltdown. It's not a pivot to a more normal style of negotiations. So the notion that this is some diabolically clever master plan to get everybody all excited and then to suddenly pull a solution, a rabbit out of the hat, strikes me as magical thinking. VAUSE: To say the least. Russell, thank you so much for being with us.

We appreciate your time as well as your insights. Thank you.

RUSSEL Thanks, John.

VAUSE: Well, President Xi Jinping is locked in an escalating trade war with the United States. At home, it seems he continues to purge senior officials from the military. China's second highest ranking official in the People's Liberation Army has not been seen in public since a notable absence from a recent high profile event. CNN's Will Ripley has details.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Every spring in Beijing, Chinese leader Xi Jinping and his powerful inner circle plant trees, a carefully choreographed ritual to mark National Arbor Day. More importantly, it signals unity and strength at the top.

But this year, there's an unsettling omission. One of China's most powerful military men is missing. General He Weidong, seen here taking part last year, but not this year. The general seems to be missing in action.

Speculation is swirling he may be the latest and highest ranking disappearance in Xi's deepening purge of the 2 million strong People's Liberation Army.

Since the summer of 2023, more than a dozen top military officials have vanished or been ousted, including two defense ministers and leaders of China's nuclear capable rocket force. General He is not just any officer, he's one of two vice chairmen of the Central Military Commission, the PLA's top authority led by Xi himself. Their connection runs deep, going back decades.

He once led China's Western Theater Command near India, later the Eastern Theater Command which would spearhead any invasion of Taiwan. He oversaw troops simulating Taiwan blockades and warplanes flying near the island almost daily.

RIPLEY: And when someone that powerful just disappears from public view without even a word from China's Defense Ministry, it could have huge implications well beyond the Chinese mainland. From here in Taipei to Washington.

RIPLEY (voice-over): The latest mystery echoes the case of Qin Gong, China's former Foreign Minister who vanished in 2023. Here he is with then U.S. Secretary of State Antony Blinken weeks before disappearing, then losing his job amid rumors about his personal life.

General Lee Shangfu, seen here with Vladimir Putin, was China's face at global security summits as Defense Minister. Here he is in Singapore meeting top U.S. officials. Two months later he was gone. At

the heart of the current purge, China's missile command and military procurement closely watched by the Pentagon. With U.S.-China tensions rising and an all out trade war unfolding, Xi Jinping has made one thing loyalty is nonnegotiable. But as these disappearances mount, so do the questions why is China's military still plagued by corruption after more than a decade of Xi's anti-graft campaign.

[01:15:05]

If even his most trusted generals are not safe, who could be next to disappear?

RIPLEY: So why is Xi cracking down? Is he worried that his military might crumble if a conflict were to break out here in Taiwan, just like Russia's military did in Ukraine? Some think that China's military might be in real trouble. Certainly observers here in Taipei, they look at things like corruption running deep, commanders selling promotions, taking bribes, even running side hustles.

They believe it may have hollowed out the force from within. Even questions of whether the weapons systems themselves may be compromised. And then of course, the big issue, if loyalty to the party actually matters more than actual military skill. Will Ripley, CNN, Taipei.

(END VIDEOTAPE)

VAUSE: Germany's new chancellor has a new coalition government. Just ahead, how he plans to revive the German economy while also dealing with Trump tariffs. Also, dozens of Palestinians remain trapped or missing under the rubble of a residential building after a deadly Israeli airstrike. The very latest from Gaza in a moment.

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VAUSE: U.S. tariffs are now an additional issue for a new German government which is already dealing with years of economic stagnation. On Wednesday, incoming Chancellor Friedrich Merz announced a deal between Germany's two major centrist parties to form a coalition which he says will revive a failing economy.

(BEGIN VIDEO CLIP)

FRIEDRICH MERZ, GERMAN CHANCELLOR-IN-WAITING (through translator): The future government, the future coalition will reform and invest to keep Germany stable, make it more secure and make it economically stronger again. And Europe can also rely on Germany.

(END VIDEO CLIP)

VAUSE: More details now from CNN's Fred Pleitgen reporting in from Berlin.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Germany has taken a major step towards forming a new government as the conservatives and Social Democrats have managed to come together and agree on a coalition contract going forward.

Now, this makes conservative Friedrich Merz the designated chancellor and he could take office within the next couple of weeks. There are several topics that are of extreme importance. The two coalition partners have said.

On the one hand, it is Germany's economy, which has been faltering really over the past couple of years. And the designated chancellor, Friedrich Merz, says that one of the main priorities, we're trying to get more investment going here in Germany, but then also to decrease tax rates, especially on medium and smaller sized companies, which are considered to really be the backbone of the German economy.

On the other hand, also security, international security, very important for the Germans as well. And that, of course, first and foremost means defense. The new German government is set to spend a lot more on defense than Germany has in the past. And the third big issue is going to be migration, where the two coalition partners have already announced that they want to curb asylum seeking here in Germany, but immigration in general. Friedrich Merz had this to say after the negotiations.

MERZ: The key message to Donald Trump is Germany is back on track. Germany will fulfill the obligations in terms of defense, and Germany is willing to strengthen their own competitiveness. And that is not just Germany, that is Europe, the European Union. And Germany will be again a very strong partner within the European Union, and we will bring the European Union forward.

PLEITGEN: Now, all this comes as Germany faces several big challenges, both here at home, but then also on the European and international stage as well. Of course, first and foremost, that being the Trump administration and its tariffs. One of the things that we have to keep in mind is that Germany is not only Europe's largest economy. It's also a large manufacturing economy and a very large economic exporting economy as well.

And so therefore, the tariffs, especially on Germany's powerful auto industry, could hurt this country very dearly as far as migration is concerned. The Germans certainly have had a lot of problems in that regard, and that was really one of the big priorities here for this country.

And then, of course, there is the continuing situation in Ukraine, where at this point in time, the Germans say that of course, they want to continue to help Ukraine, but they also feel that they need to be doing more for their own defense as the threat of Russia looms. Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

VAUSE: Israel has expanded military operations in Gaza, with at least 23 Palestinians, including children, killed in one strike alone Wednesday. Sixty people were wounded and dozens of others listed as either missing or trapped under the rubble of what was a four story residential building in Gaza City.

Israel's military says it struck a senior Hamas terrorist who planned and carried out attacks from northern Gaza, but the Israeli military did not identify their target. Also, military operations now expected to expand to the south of the territory around Rafah.

The death toll in one of the deadliest tragedies in the Dominican Republic has risen again, 184 confirmed dead. Authorities say many victims in Tuesday's nightclub roof collapse are yet to be identified. CNN contributor Stefano Pozzebon has the latest now reporting in from Santo Domingo.

(BEGIN VIDEOTAPE)

UNDIENTIFIED MALE: Fernandez Reyes Reyes, Joel Manuel Santana Pion.

STEFANO POZZEBON, CNN CONTRIBUTOR (voice-over): The names read out loud by forensic doctors, each of them a life cut short. More than a hundred bodies have been recovered, but dozens yet to be identified in the rooftop collapse of a nightclub in Santo Domingo. A growing death toll cutting through the soul of this nation.

[01:25:00]

The Jet Set was an iconic venue Monday night. Many local celebrities had come here to celebrate its 50th anniversary. Several are now being mourned, including two former major league baseball players, a Latin music star and the governor of a local province.

Dominican President Luis Avenader declared three days of national mourning to commemorate the victims. Outside the venue, relatives search for the names of their loved ones in lists hanging on a field hospital.

I've lost two brothers. This is a national tragedy. We are just heartbroken, says this man. The rescue operations continue in the dark. There are still people to be found. A race against time even when hope is fading fast. A small group of faithful singing their pain and refusing to let go. Stefano Pozzebon, CNN, Santo Domingo.

(END VIDEOTAPE)

VAUSE: Still ahead on CNN Newsroom, Trump tariffs are set to drive up the cost of a cup of coffee by how much and why? That's after the break.

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[01:31:30]

VAUSE: Could it be irrational exuberance? Donald Trump's 90-day pause in reciprocal tariffs was enough to send stocks around the world surging back after days of massive losses. And the recovery comes despite the fact this is just a pause, not an end to the trade war and a raft of other Trump tariffs on aluminum, steel and cars and a whole lot more remain in place. More details now from CNN's Anna Stewart.

(BEGIN VIDEOTAPE)

ANNA STEWART, CNN CORRESPONDENT: Well, after days of financial turmoil and trillions of dollars being wiped off stock markets, President Trump sent another shockwave through markets, this time sparking a sizable relief rally on Wall Street.

In a social media post, the U.S. President announced an unexpected 90- day pause on the so-called reciprocal tariffs, which had been implemented just hours earlier. Bringing them all to a baseline of 10 percent.

Well, not quite all. The U.S. has raised tariffs on China to 125 percent, he says based on the lack of respect it's shown, that is after Beijing announced further retaliation against the U.S. earlier in the day, raising their levy to 84 percent on U.S. goods starting Thursday.

The 25 percent tariff on steel, aluminum and autos imported into the U.S. remains. So some winners and some losers in the latest salvo of Trump's trade war.

And while investors and all of us try to keep up, one of the few certainties you can bet on is a total lack of certainty when it comes to U.S. trade policy.

Anna Stewart, CNN -- London.

(END VIDEOTAPE)

VAUSE: Mohamed El-Erian is chief economic adviser to the financial giant Allianz and president of Queens College at Cambridge University. Thank you for being with us.

MOHAMED EL-ERIAN, CHIEF ECONOMIC ADVISER, ALLIANZ: Thank you for having me.

VAUSE: Ok. So the U.S. President did at least acknowledge Wednesday he was aware of the impact his tariffs were having on the bond market. Here he is.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I was watching the bond market. The bond market is very tricky.

I saw last night where people were getting a little queasy.

(END VIDEO CLIP)

VAUSE: A little queasy is just a little understated. The bond market is essentially the debt market. It determines how much the U.S. pays to borrow money. So why was it this factor, not the bloodbath on stock markets around

the world? Not a possible recession or global trade war, which forced the president to reverse course here?

EL-ERIAN: So there was a whole list of possible factors that could have caused that. And like you say, it was the bond market. And it was something in particular in the bond market. And that is signs of market malfunction.

There's a big difference between price volatility prices go up and down but buyers and sellers can transact; and market malfunction when buyers and sellers cannot transact. When prices do not clear.

We went through this of course, in the global financial crisis. We went through this during the pandemic in the beginning. And what it does, it paralyzes the whole system.

So we got very close to the line that separates price volatility from market malfunction. And that sent warning signals all over the policymaking world.

TRUMP: Well, the White House was very clear on Tuesday that Donald Trump wouldn't blink on these tariffs. Listen to this.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: President Trump has a spine of steel. And he will not break.

(END VIDEO CLIP)

[01:34:52]

VAUSE: But now President Iron Spine has also opened the door for exemptions for U.S. companies which have been impacted by his tariffs. Here he is.

(BEGIN VIDEO CLIP)

TRUMP: As time goes by we're going to take a look at it. There are some that have been hit hard. There are some that, by the nature of the company, get hit a little bit harder. And we'll take a look at that.

UNIDENTIFIED MALE: How will you determine that over the next 90 days?

TRUMP: Just instinctively.

(END VIDEO CLIP)

VAUSE: That sounds a lot like crony capitalism. And if nothing else, how much uncertainty will that now add into the mix?

EL-ERIAN: Think of a spaghetti bowl that Is going to start having all sorts of interconnections. It's going to be very difficult to figure out how things are interconnected. There's a reason why economists like simplicity because the minute you

start to have differentiated treatment, there are a whole host of unintended consequences and collateral damage.

So the more we go down the road of differential treatment, the more uncertainty goes up and the more efficiency goes down.

VAUSE: And President Trump still seems to believe that his tariffs, these reciprocal tariffs will eliminate trade deficits with individual countries. That's the point of all of this.

But just as an example, Cambodia exports more than $12 billion in goods, mostly clothing, to the United States compared to what it imports in terms of goods from the U.S.

So there is no way on this planet that Cambodia will ever be able to afford to buy $12 billion worth of U.S. goods in one year.

And many other countries are in a similar position. So how does this all end up?

EL-ERIAN: So I think this is correct. I mean, I'll give you a simple example. I go get my haircut, I run a deficit with the person cutting my hair. If we wanted to run balanced trade, I would either not get my haircut or I would cut the person's hair which isn't a good outcome for either of us.

But I, deep inside, I don't think that is the goal. I think the goal is fairer trade. The goal is to reduce unfair trade, sanctions, tariffs and non-tariff barriers that face the U.S.

If you want to simplify it, you of course put up the deficit because it's very hard to explain to someone what is a non-tariff barrier. But I think ultimately it's not about deficits for the reasons you've cited.

There are countries you need to export to. There are countries you need to import from. And it doesn't make sense to have balanced trade with everybody, but it does make sense to try to have a fairer trading system.

VAUSE: Now the White House is trying to spin all the chaos of the past couple of days as part of some kind of master plan to try and corner China. Listen to this.

(BEGIN VIDEO CLIP)

LEAVITT: Many of you in The media clearly missed the "Art of the Deal". You clearly failed to see what President Trump is doing here.

(END VIDEO CLIP)

VAUSE: Yes, it's all the media fault. What would be a bigger concern to you? Option one, this was in fact planned out by the president and his advisers; while option two, the whole thing was never thought through entirely and was driven by sort of incompetence and a total lack of understanding about tariffs and trade deficits.

EL-ERIAN: I think if you want to give credit to the president, you say this was planned, but I think the reality in politics is that when you get unexpected development, the narrative starts to have to fit what has actually happened.

And we've seen this in the beginning this was going to be a painless journey. Then there was acknowledging -- acknowledgment there was going to be a few disturbances. Then it became the pain is going to be offset by the gain.

And now it's become its been part of the whole approach all along. I think it's natural in politics for the narrative to evolve in order to fit the facts of what actually occurred.

VAUSE: And that's the narrative we have right now, that this was all part of some grand plan.

Mohamed, thank you for being with us. We really appreciate your thoughts.

EL-ERIAN: Thank you.

VAUSE: Donald Trump's tariffs are part of a much bigger plan to bring back jobs and manufacturing to the U.S., which have been lost over the years to countries with lower costs of production. At least that's the theory.

But what about imports, which can't be replaced domestically like coffee? Because of climate, it's not commercially viable to grow coffee beans in the U.S. mainland.

Even so, as CNN's Isabel Rosario reports, the price of a cup of coffee is set to rise as a direct result of tariffs.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: We love coffee. America runs on whatever Coffee company.

ISABEL ROSALES, CNN CORRESPONDENT: Americans may soon have to start rethinking their morning beverage routine as President Trump's new tariff policy is about to brew up trouble for the coffee industry.

DONALD REESE, COFFEE MAN COFFEE SHOP CUSTOMER: It's hurting like the everyday person that will say a 10 percent increase is a lot.

It might not be a lot to our administration, but to us, every day we drink it, it is a lot.

ROSALES: Coffee beans can only grow in tropical climates, so the U.S. imports its coffee beans mostly from Brazil, Colombia and Vietnam along the coffee belt.

It cannot be grown in most of the U.S., except for primarily in Hawaii. [01:39:45]

DEVIN HUNTER, CO-OWNER, COFFEE MAN COFFEE SHOP: This right here is the last shipment of coffee beans from Honduras that we'll get before the 10 percent tariffs come into effect.

ROSALES: Devin Hunter, the co-owner of Coffee Man in Atlanta, tells us coffee from Brazil is already up nearly 30 percent over the past year because of unfavorable growing conditions. And now these tariffs make it a one-two punch.

Is it more a matter of this just being slightly aggravating, or is this like a five-alarm fire.

HUNTER: It's going to affect every coffee shop in America, I think, you know. Every coffee roaster, every coffee shop -- it's going to affect everyone.

So I think everyone is going to kind of feel the pain, the pain from this, because it's like your latte is probably going to go up.

ROSALES: President Trump says part of the incentive behind tariffs is to produce more things in America.

HUNTER: That's nice in theory except that coffee can't really be grown in America. So it's like, I wish they maybe had thought that through and there could be some exceptions for coffee.

ROSALES: But here's the problem. The USDA forecasts we'll consume nearly 3 billion pounds of coffee beans, yet only 1 percent of it can be sourced domestically. That's according to the nation's largest trade organization.

Experts tell CNN there's simply no way we can just grow more coffee here in the United States. We have to import.

Hunter says unless something gives over the next month, he'll likely be forced to raise prices.

Some people would say, well, you as a business should absorb that 10 percent, not pass it along to the consumer. What do you say to that?

HUNTER: If we tried to absorb it, we might not be able to exist as a business.

ROSALES: It's now a mad scramble to stockpile beans at pre-tariff prices.

HUNTER: I'm making our Vietnamese cold brew. So it's a coffee that we roast from Vietnam, and it has a really nice smokey flavor.

ROSALES: And even tariff shopping coffee nations, which means at a whopping 46 percent tariff, Vietnam doesn't make the cut.

HUNTER: Yes. That one -- that one hurts a lot because Vietnamese is one of my favorite coffees. That's the one that I'm having to look at the most. We're not going to be able to contract any coffee from Vietnam. We just may not be able to do it.

(END VIDEOTAPE)

VAUSE: In a moment -- excuse me -- using artificial intelligence to keep track of killer whales. How this technology is changing marine conservation efforts for the better.

[01:41:53]

(COMMERCIAL BREAK)

VAUSE: In the Canadian province of British Columbia many indigenous communities consider orca whales as guardians of the sea. Despite that, they continue to face increased threats in the northern Pacific.

Today, on "Call to Earth, we meet a small research team using artificial intelligence to track and monitor orca populations and to protect their habitat.

(BEGIN VIDEOTAPE)

JARED TOWERS, EXECUTIVE DIRECTOR, BAY CETOLOGY: Oh, good morning Rolf.

UNIDENTIFIED MALE: Good morning. I'm assuming you're looking for the Bigg's.

TOWER: Yes, I'm just creeping along here at the pier in the fog, super slow. I'm sure I'll see them here in the next few minutes.

HANAKO MONTGOMERY, CNN CORRESPONDENT: Scientist Jared Towers and PhD student Chloe Kotik are on the lookout for dolphins.

But not just any dolphins. They're looking for the largest and most deceivingly named member of the dolphin family. The orca, also known as the killer whale.

TOWERS: I spent a lot of time as a kid here in Alert Bay (ph) and the surrounding waterways, and this area has always been a mecca for killer whale research since the 1970s. So I was kind of brought up into this field.

My job basically entails keeping track of killer whales. I collect photo identification data, predation data, social and behavioral, as well as genetic data.

MONTGOMERY: Jared has been studying whales for about 20 years focusing mainly on the Bigg's species also known as transients that live in the North Pacific Ocean.

Bigg's killer whales are transients. They primarily feed on marine mammals like seals, porpoises, dolphins, sea lions, and even other whales occasionally.

MONTGOMERY: But as apex predators, they also ingest high concentrations of harmful contaminants found throughout the marine food web. TOWERS: So when you have something like a killer whale come along and

eat the seal that ate the fish, then it bioaccumulates those toxins at a much greater rate. So that's why these mammal-eating killer whales we have on the coast here are some of the most toxic animals on the planet.

MONTGOMERY: The toxic chemicals from things like industrial waste and oil spills collect in whales' blubber which can affect their health, and the survival rates of their offspring.

CHLOE KOTIK, PHD CANDIDATE, UNIVERSITY OF ALASKA FAIRBANKS: My hope for this work is that by quantifying some of the effects that contaminants are having on these killer whales, we can provide a little bit of evidence for how we're affecting them and that might motivate us to clean up our act.

MONTGOMERY: Their work Relies heavily on photo identification through digital cameras, citizen submissions and drones.

TOWERS: Well, right now I'm just waiting for these whales to come up. I'll fly over each one of them and get a look at the body condition.

MONTGOMERY: Over the last few years, Jared has been tapping into A.I. to help process and organize the vast amounts of visual data they collect.

TOWERS: So when we click on a photo, for example, the model suggestion automatically shows up and then the model predicts who the individual is. And you can see that even though this isn't a great ID photo, the model is correctly identifying this as T-90.

[01:49:47]

MONTGOMERY: They can then take a deeper dive and apply other analytical tools to look at specific parameters like calf mortality.

KOTIK: What we're finding so far is that individuals that are getting a higher dose of contaminants from mom seem to have an increased risk of mortality before age three.

MONTGOMERY: This research helps provide insights not just into the health of these killer whales, but also their ecosystem.

TOWERS: So all the data we collect month after month and year after year is crucial for informing management decisions and conservation efforts to protect these populations.

In this part of the coast, we have some of the strongest viewing guidelines and regulations when it comes to killer whales, and that is one example of a protection measure which has been implemented over time.

When it comes to killer whales, I think it's really important that we really make an effort to coexist with them and find ways that we can both live in harmony and have successful populations moving forward.

(END VIDEOTAPE)

VAUSE: Please let us know what you're doing to answer the "Call to Earth" with #CalltoEarth. That's #CalltoEarth.

We'll be right back.

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VAUSE: The world's best airport for 2025 has been announced. And drum roll, please, the winner is according to a traveler survey company Skytrax, Singapore's Changi Airport. This is the 13th win for Singapore, reclaiming the title from last year's winner, which is Doha. Changi also won best airport dining, world's best airport washrooms.

If you're looking for the world's cleanest airport, you won't find it in the U.S., but rather Tokyo's Haneda Airport, which was also ranked number three overall.

Nine European airports made the world's top 20, which, in a surprise to no one who has flown in the United States, included not one American airport.

More than a century after the Titanic sank, 3D scans are revealing new insights about the final moments of the ship's maiden voyage.

The deep-sea mapping company Magellan created a full-scale digital image of the liner, and where it came to rest after hitting an iceberg.

The digital reconstruction is now the basis of a new documentary about the ship's final moments, including the amount of damage to the ship and the heroic actions of some on board like the ships engineers in a boiler room keeping electricity on for two hours to allow distress signals to be sent. The documentary is called "Titanic, the Digital Resurrection".

The nation of Bolivia has experienced some of the heaviest rainfall in decades, drowning farmland, displacing families, and killing dozens of people.

Details now from CNN's Patrick Oppmann.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT: Water surrounds this house, flooding in from every direction. But life must go on. This woman stands on a wooden plank as she cooks for her family. The alternative to soaked feet and jeans.

For others, staying isn't an option. Makeshift shelters lined the side of this road. The closest thing to respite for families displaced by the floodwater.

MAYRA PERALTA, DISPLACED RESIDENT: That's what we have to do. Leave our houses because every day the water rises. OPPMANN: Bolivia's intense rainy season has brought with it floods,

landslides, even hail.

Here at this La Paz Cemetery, mourning families face the grief of death all over again. Torrential rainfall caused a partial collapse, leaving coffins and even bodies vulnerable.

"My daughter and mother-in-law are buried here," this woman says.

[01:54:48]

OPPMANN: Families forced to exhume their loved ones, risking contamination and reopening emotional wounds.

And in rural Beni Province, cattle barely keeping their heads above water, wading through what was once pasture. Herders leading them to higher ground among the last of the dry patches.

TERESA VARGAS, RANCH OWNER: My cattle are suffering and the animals are very thin. Plus there are a lot of snakes and tigers in that flooded area because the mountains are high. We have a lot of losses, money spent and loss of cattle.

OPPMANN: Now, produce and beef production have both taken hits, a problem for both overseas markets and local prices.

But it's more than inconvenience. Since November, floods have killed dozens of Bolivians and affected hundreds of thousands of families. And more rain is forecast in the next week.

A national emergency has been declared and assistance requested. But when the floodwaters eventually recede, Bolivians will be left to pick up the pieces.

Patrick Oppmann, CNN.

(END VIDEOTAPE)

VAUSE: New research suggests that animal companion may be just as vital to happiness as being in a long-term relationship, or having friends. New quality of life survey finds a pet is worth up to $90,000 a year in life satisfaction.

The figure is roughly the same as a theoretical boost in income for having a spouse or hanging out with friends. That's according to the Social Indicators Research Group, which conducted the survey.

Researchers say they're hoping the life satisfaction data might help ease restrictions on pets. How they come up with this, who knows?

Well, assemble the minions and calling all wizards. An ad for Universal -- a new theme park is coming to the U.K. Universal Studios has struck a major deal with the British government to build its first European resort in an English market town just 80 kilometers north of London. No details yet on exactly which rides and attractions from Universal's

blockbuster movie franchises will be featured, but the new park, expected to open in 2031, and will become expectedly the biggest visitor attraction in the United Kingdom.

Also expected to bring in an estimated 50 billion pounds and nearly 30,000 jobs to the British economy. That message brought to you by Universal.

Thank you for watching. I'm John Vause.

CNN NEWSROOM continues with my friend and colleague Rosemary Church after a very short break.

See you right back here tomorrow.

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