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CNN International: Helicopter Crashes into Hudson River; Trump Concedes Tariff "Transition Problems"; U.S. Stocks Tumbling; U.S. Tariffs on China Now at 145 Percent; Repercussions from Trump's Tariffs War; E.U. to Hold Free Trade Talks with UAE; Prada Agrees to Buy Versace; Government Memo Makes Case to Deport Khalil; Top Chinese General "Missing in Action"; Ksenia Karelina Freed from Russian Prison. Aired 6-7p ET
Aired April 10, 2025 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:00]
JIM SCIUTTO, CNN ANCHOR: Hello, and welcome to our viewers joining us from all over the world. I'm Jim Sciutto in Washington.
And just ahead this hour, breaking news, sad news. Six people killed including three children after a helicopter crashes into New York's Hudson River. The video just shocking to watch. The return of the market meltdown after Wednesday's brief rally. U.S. stocks hit reverse gear. President Donald Trump acknowledges there will be, quote, "transition problems and costs." Prada agrees to buy Versace and forge an Italian fashion powerhouse. We're going to look at the deal and what new U.S. tariffs mean for the luxury sector. That conversation and much more coming up.
We begin with the breaking news out of New York City, a helicopter carrying six people has crashed into the Hudson River. You're looking at live pictures now of that scene. A short time ago, New York Mayor Eric Adams, confirmed that all six on board died in the crash. Authorities say they are investigating what caused it.
Just shocking video has been gathered from social media. It shows the moment that the helicopter fell from the sky like a stone. I should warn you, this video is disturbing.
The speed at which it fell there and hit the water, all those lives on board. CNN Aviation Analyst Peter Goelz joins me now. Peter, of course, early in this investigation, but based on what you see in that video there, can you give some potential causes, explanations for a crash like that?
PETER GOELZ, CNN AVIATION ANALYST: No, it's very difficult. I mean, this was clearly a catastrophic loss, sudden loss of its ability to maintain flight. The rotors from the copter separated from the main body. And you are right, it hit the water at a tremendous rate of speed. And unfortunately, you just can't survive that kind of impact and no one did.
The NTSB has a team, it's on the way. This is not the first time. There have been fatal tourist accidents on the Hudson and the NTSB will get to the bottom of this, I think fairly quickly.
SCIUTTO: If that was what happened, the rotors separating from the aircraft, how often does that happen and what are the potential causes for that to happen?
GOELZ: Well, you could have a catastrophic gear box failure. You could have some sort of in-flight failure of one of the rotors. It might have been a mid-air collision with something, that hasn't been mentioned, but it can't be ruled out until the NTSB look at the wreckage. But it could be any number of things.
I mean, most importantly, these tourist type excursions have a very shaky safety record. When I was at the board, we investigated a number of such accidents in Hawaii. We had similar ones in the Grand Canyon. And I say there was another one in New York City on the East River in 2018 which killed six people. So, I mean, these happen fairly often and something's really got to be done.
SCIUTTO: And what -- in those previous crashes involving tourist helicopters, what has the issue been? Has it been traffic, has it been pilot skill? What have been the problems?
GOELZ: It's been a -- yes, it's been a variety of issues. One is, is there's that there was an incentive to complete the tourist flight even in difficult weather. And in Hawaii, you have ever changing weather, particularly around the volcanoes and in some of the more popular, you know, viewing sites. With others, it was simply a mechanical failure.
And what complicates the issue, Jim, is that you are in a vehicle that you don't often fly in, you're wearing a different sort of safety belt and there are no flight attendants to assist you in exiting. This really underscores the importance of flight attendants in accidents.
[18:05:00]
SCIUTTO: Right. Because I, I imagine in a situation like this, and again you, you made the point, the speed with which it hit the water, it makes it unlikely anyone could have survived. Though one could imagine circumstances where quick exit from the aircraft might have made a difference.
GOELZ: That's right. And the one in 2018, the aircraft inverted and was in the water and, people were -- people drowned. So, it is -- you know, if you hit cold, murky water at a high rate of speed, even if you survive, it's so disorienting. It's very difficult to get out, particularly if you've never experienced anything like that. And very few of us have.
SCIUTTO: No question. Well, a sad event. Peter Goelz, we do, as always, appreciate your expertise.
GOELZ: Thank you, Jim.
SCIUTTO: Well, on Wall Street, other major story we're following today, U.S. Stocks reversed course, gave back a good chunk of Wednesday's rally. The NASDAQ is today's biggest loser, down more than 4 percent. Wednesday's short-lived gains after that bounce from massive losses. The market's now showing the same risks remain.
The E.U. announced Thursday, it will pause retaliatory tariffs against the U.S. for 90 days. This after President Trump's own 90-day tariff pause on the E.U., as well as other major trading partners of the U.S.
White House economic adviser, Kevin Hassett, says the U.S. is close to announcing trade deals with some countries. There's no sign, however, that the trade war with China is easing. In fact, the U.S. now says tariffs on China will stand at 145 percent. That's 20 percent higher than previously believed. It just hasn't been clear the confusing signals were getting out of the White House. President Trump said in a cabinet meeting today that he still hopes to begin the negotiations with Beijing as well to bring down those tariff levels.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENT: I'm sure that we'll be able to get along very well. I have great respect for President Xi. He's been -- in a true sense, he's been a friend of mine for a long period of time. And I think that we'll end up working out something that's very good for both countries. I look forward to it.
(END VIDEO CLIP)
SCIUTTO: Janel Yellen believes the steep selloff in the bond market earlier this week forced President Trump to announce that 90-day tariff pause. In an exclusive interview on CNN, the former U.S. treasury secretary says, the economic damage President Trump has caused since taking office is breathtaking in her view.
(BEGIN VIDEO CLIP)
JANET YELLEN, FORMER U.S. TREASURY SECRETARY: We had a very well- functioning economy and President Trump has taken a wrecking ball to it.
BIANNA GOLODRYGA, CO-ANCHOR, "ONE WORLD": You're now back to being a professor. I have to ask you, how would you grade how the Trump administration has handled the economy thus far?
YELLEN: I'm afraid I could not give it a passing grade. I'm sorry. I think policy has been -- this is the worst self-inflicted wound I have ever seen in administration impose on a well-functioning economy.
GOLODRYGA: The likelihood of a recession due to President Trump's economic policies, in your view?
YELLEN: Well, it's clearly risen. And in addition to the tariffs in the negative likely impact on consumer spending. We have a huge uncertainty shock. No one knows where any of this is going. We're now in a huge war with China and the tariffs that have been imposed on China are what I would call prohibitive. They're going to result in massive impacts on the United States and the global economy.
(END VIDEO CLIP)
SCIUTTO: Canadian businessmen as well as co-host of the investment show "Shark Tank," Kevin O'Leary is quite a public supporter of U.S. tariffs on China. In fact, he's calling for even higher rates, 400 percent to force Beijing to the bargaining table. He says China must be punished for not playing by the rules of international trade. And Kevin O'Leary joins me now. Thanks so much for taking the time.
KEVIN O'LEARY, CHAIRMAN, O'LEARY VENTURES: Great to be here. Thank you.
SCIUTTO: So, first, I want to ask your view of where the markets stand. Because you've had a major sell-off over the course of weeks. You had a bounce yesterday, but then the market giving back many of those gains as well as still some worrisome signs in the bond market. In your view, is this short-term pain or do you see more worrisome signs, not just in the bond markets, but in the falling price of oil or the falling U.S. dollar?
[18:10:00]
O'LEARY: No, I don't -- I'm not concerned about that. This is a highly volatile period as two different verticals get negotiated. So, what Yellen forgot to tell you there is China does a lot of IP theft and has for decades, has never ever been compliant with the WTO since 2000 when they went in, and the amount of theft they do in Europe and the United States in terms of IP and then produce those products and sell them back into those markets at discounted prices, because they don't have to pay for R&D, it's beyond abusive.
And as an investor in technology and in companies, to watch my IP get stolen, there's nothing I can do about it. She just omitted that, she forgot to say that. And so, I'm just saying as one of millions of investors have been watching this now for decades, I've had enough. Thank you. And I would like to bring Xi to the table and level the playing field.
I want to do business in China. I have nothing against the Chinese people and I'd love to be a participant in competing over there, but not under the rules we have now. It's an unbalanced, unlevel playing field. We can't litigate in their courts, but they can litigate us. They actually access our capital markets in the United States and they're noncompliant, and I have to pay millions to list my company. Chinese companies don't even comply. So, you can understand how she's a little offside in understanding the big picture there.
SCIUTTO: No, listen, I've spent a lot of time in China myself, and I've spoken to U.S. companies that have faced exactly what you're talking about. When it comes to tariff though, I wonder this, what portion of those tariffs are you prepared for U.S. consumers to pay or are you suggesting that U.S. consumers simply stop buying Chinese products?
O'LEARY: No, I'm assuming that this is very short-lived. I don't want to do this 25 percent a day increase. And I've advocated for something in more of a shock and awe, 400 percent. Just tell Xi, listen, we're shutting down the entire U.S. economy, 40 percent of consumed goods worldwide, and. 26.1 percent of the world's GDP.
And here's why he would care. So, you've got all those factories with all those people making stuff, that 40 percent of it gets sold to the United States. And so, if they get unemployed, and if you're the supreme leader in perpetuity for a life, you got to make sure those people have jobs and they can take care of their families, or they basically light up torches and go to the castle like in the Frankenstein movie, and you're finished.
And so, he knows that he's a very precarious position. And I'm just tired of, you know, fooling around with it anymore. I'm done with this, you know, 30 years of just having my IP stolen. I'm kind of tired of it. And so, let's bring him to the table. I'm tired -- like 125 percent, 400 percent, it's the same thing. You can't do business with those tariffs. But I like sending a signal. And also, an olive branch, saying, look, why don't you come over and meet in Geneva, go to Washington. I don't care. And let's work all this out.
But it's not just trade tariffs. It's you cheating and stealing. We're tired of it and you've got to stop. They don't even think it's -- they don't they actually don't care that they steal IP. They don't -- they think it's OK. It's almost, the analogy is like a puppy, when you're training it, you stick the nose in the poopoo and you roll up a newspaper and you smack it on the rear end. That's what we got to do here in China. I hate to use that analogy, but that's where we're at after 20 years. They have not understood how this works.
SCIUTTO: Given your experience in China, I'm sure you're aware that there's a fair amount of nationalism in China and that China, though it has certainly no democracy it does have internal politics, and Chinese leaders do not want to be seen as buckling to U.S. pressure.
So, my question is, in terms of negotiation with the Chinese leader here, does he come to the table on these terms, right? Because so far, China's reaction has been, we're going to up the cost for you. And they're also rattling the saber on other ways that they could squeeze the U.S., for instance, the many things that China makes that are essential to manufactured products here in the U.S. I mean, do you see, based on your experience, China taking this pressure and saying, OK, we can negotiate in good faith?
O'LEARY: Xi is not stupid. He's an incredibly crafty, smart individual, and that's why he's risen to a position he's in. But he understands that this is DEFCON 1 here. This is mutual destruction. It's almost like a nuclear economic war.
The U.S. has to work this out and so does China, but we might as well get it done. The difference here, it's not just about tariffs, tit for tat tariffs. China has to stop stealing IP and it has to actually open up the markets.
[18:15:00]
I want to tell you something that you may not be aware of, that's only hours old. There's been a new SEC approval through -- I mean, there's a new leader at the SEC and a letter was put out by Senator Rick Scott a few hours ago. He said that he would not approve this nomination unless they actually applied the laws that were put in place four years ago that looked at every Chinese listed company on the New York Stock Exchange and NASDAQ to see if it was compliant.
And they gave those Chinese companies originally three years to comply, and then they reduced it to two and none of them did. Hundreds of billions of dollars of market cap. Well, is Atkins, Paul Atkins, I think is his name. We have to make the assumption with the Rick Scott letter that he's going to delist these companies. So, the pressure on China is getting immense.
You get -- this story isn't broken yet, but I think it's going to happen in the next few days. These giant Chinese companies that have actually tapped the U.S. markets that are not compliant are going to get delisted one after another. At some point Xi has to say, look, I'm not stupid. I'm going to come to the table, wherever it is. I encourage this to happen because I don't want this trade war with China. I want to trade with the Chinese people, but they steal our IP, like they don't even care. And so, I mean, at the end of the day, you got to spank the puppy.
SCIUTTO: Yes. Listen, I've written about Chinese IP theft. So, I hear where you're coming from. Delisting would certainly be an enormous economic penalty on China, but I wonder, do you worry about China taking its own nuclear option of selling U.S. treasuries, which of course would be a problem in terms of driving up the cost of debt in this country?
O'LEARY: Go ahead. Listen, at the end of the day, the upper hand is the size of the economics. It's basically that if people are unemployed by the hundreds of thousands in China, Xi's job is gone. We all know that the upper hand is the larger economy. So, you know, I don't want to talk about war here with bombs. This is an economic war. And right now, I know who has the upper hand.
I'm sorry, money talks and BS walks. And that's what's going to happen here. We can have the rhetoric, but I just say, screw around with this 25 percent stuff, 400 percent tariffs, shut down the markets. He gets on a plane. Geneva, Switzerland, let's talk. I'm just tired of the rolling theft. I'm just tired of it.
SCIUTTO: Kevin O'Leary, appreciate the conversation.
O'LEARY: Thank you. Take care.
SCIUTTO: Joining me now is Richard Quest. He's been listening to my conversation with Kevin O'Leary as well. And, Richard, I wonder, listen, I mean, he's not -- I don't know if Trump's going to go to 400 percent, but he is not far off the Trumpian view of this, right, which is all power all the time, and that will make the other side relent. Do you buy that?
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE AND CNN ANCHOR, QUEST MEANS BUSINESS: I do. And I think that what Kevin is saying is -- it is a -- it's not the same thing as what Donald Trump is doing at all. It really isn't. What -- because what Kevin is saying is there's no difference between 125 and just diddling around getting there and just do 400, when it's quite clear where you are going. All right? Make it so that there is no obvious -- now, there's going to be huge amounts of ructions in the -- I mean, Kevin sort of -- would have been the first to agree. It will have large ructions, but he is basically saying, make it so painful to the Chinese that they have no choice, because I think he's probably right at the end of the day.
You see, we always talk about the Chinese leader not having to worry about politicians from Beijing North or Shanghai South, but there is a cadre of leader. You know this better than I do from your time. There is a cadre of faceless men and women who sit in those Congress and meetings and they are the ones that will just -- if he doesn't do it right.
SCIUTTO: But let me ask you this, Richard, because the markets have already delivered quite pointed warning signs about the status of this trade war, right? Enough yesterday for Trump to pull back from at least some of his tariffs here. Those bond market moves are concerning, enough to get folks in Trump's ear yesterday.
If you had a 400 percent between the world's two largest economies, to which China might very well respond, retaliate, what are the markets going to do?
QUEST: That's why Kevin is a billionaire and I'm not. I mean, because he is prepared to stake -- you know, you -- look, you and I are going to sit for the next goodness knows how long, and say, well, we could, this could happen, and then that could happen, and then perhaps the other could happen. Kevin says, no, this is what I want. We're going to go and do it. That's the way we do it.
[18:20:00]
Now, Donald Trump is, I think, a lighter version of that in a sense, because he has got many other constituencies that he has to worry about. I -- would Kevin's strategy be reckless? That's the question. Yes, partly. Does the Kevin have to face his own electorate in the sense that Donald Trump does? No, not in a sense.
SCIUTTO: That's the difference, right? I mean, we're not just talking about the size of someone's investment portfolio, we're talking about the running of an economy with tens of -- hundreds of millions of Americans livelihoods at stake.
QUEST: But Jim, it's the old joke. You know, no, sir. Now, we're just arguing about the price. Once you've accepted that you're going to take this strategy, it's just a question of when and how much it's going to cost you. And the problem that the U.S. now has is it's embarked on this strategy, but the president is wishy-washy going backwards and forth, for valid reasons, but he is never properly articulated the strategy and nobody has any faith or confidence in the ability to see it through to its nth degree, and that's the difference between what Kevin is saying and what the president is doing.
SCIUTTO: Richard Quest, we'll have another day in the markets tomorrow to see how everybody receives this. QUEST: We will, sir.
SCIUTTO: Coming up the tariff war may be on ice with some partners. European leaders though are certainly not waiting around. The latest trade negotiations next.
Plus, two iconic Italian fashion brands tie the knot. I'll speak to one luxury brand expert about what it means for the industry. That's coming up.
(COMMERCIAL BREAK)
SCIUTTO: The European Union is welcoming Trump's tariff pause, announcing its own 90-day walk back of retaliatory tariffs. Commission President Ursula von der Leyen said online that the E.U., quote, "wants to give negotiations a chance," but that, quote, "all options remain on the table." While the U.S. is temporarily paused the latest tariffs, most of Europe is still facing an earlier 10 percent tariff. Here's what President Trump had to say just a few hours ago.
[18:25:00]
(BEGIN VIDEO CLIP)
TRUMP: We are looking at it as one block. They've been very tough, but they were very smart. They were ready to announce retaliation, and then they heard about what we did with respect to China and others, but China, and they said, you know, we're going to hold back a little bit. Look, the E.U. is very smart, but they really have taken advantage of the United States. They were formed for the purpose of taking advantage of the United States. And I don't blame them and I don't blame China.
(END VIDEO CLIP)
SCIUTTO: E.U. looking for other economic allies, trading partners during that pause. It's agreed to hold free trade talks with the UAE. E.U. also reportedly renegotiating prices with China for electric vehicles. My next guest is a member of the European Parliament and chairs the delegation for U.S. relations. Brando Benifei, thanks so much for joining.
BRANDO BENIFEI, MEMBER OF EUROPEAN PARLIAMENT, MEMBER, ITALY'S PARTITO DEMOCRATICO AND PROGRESSIVE ALLIANCE OF SOCIALISTS AND DEMOCRATS, EUROPEAN PARLIAMENT: Hi, thank you very much.
SCIUTTO: So, you're in Washington to meet with members of the House E.U. Caucus. I wonder when you meet with them, presumably Republicans and Democrats, do you hear them indicating that the U.S. is willing to deal here, willing to negotiate?
BENIFEI: Yes, they are clear. They all think -- I have to say, we met very different people in the House and Senate, and they all agree that we need to find a solution, that we need a deal. And they also agree that there has been too much confusion. There must be more clarity on what is on the table, what the U.S. really want in the end from the E.U. We are ready to negotiate, but we are also demanding respect. Some language was not appropriate, to be frank. And also, we are not willing to negotiate on our laws.
We are willing to work on everything, on the tariff levels, preexisting ones, and problems with standards and issues regarding opening new opportunities for our businesses, the European ones and the American ones. But we are not willing to negotiate on our laws directly. These are decided by us for our citizens. And yes, as you said, we are opening also new opportunities for trade that this is natural.
SCIUTTO: Let me ask you this, do you believe that the Trump administration negotiates in good faith? I mean, are you confident that if you make a deal tomorrow with the U.S. that that deal will still hold three months from now, six months from now, nine months from now, if President Trump changes his mind, because he has a history of changing his mind on these deals?
BENIFEI: I think American interest today is to have a reliable alliance with the E.U. And so, I think that this is due to security challenges, geopolitical challenges and also our economic prosperity. The volume of trade, but also of direct sales of both E.U. businesses here and American businesses in E.U. tells us that we need to find agreements and they must be stable.
I am sure that the Congress and the U.S. institutions as a whole, they will want stability and predictability, and if we get agreement, they will work for that to stay. And I'm convinced that the president will also understand that very clearly.
SCIUTTO: So, tell me about this deal with China, to bring in its electric vehicles, because that indicates to me, and I've heard this from officials from other countries, that in light of U.S. tariffs, they're looking to -- they're looking for other trading partners? And is this a sign that well, listen, we can't do as much trade with the U.S. as we did in the past, we have to look for other friends?
BENIFEI: Well, I don't see any immediate consequence in this case because this is the result of a negotiation with China, because China was using illegal subsidies on the electric vehicles and we wanted to find an agreement so that we could maintain trade but not accept cheating from Chinese side. And we know we have various problems with China on this, but if President Trump stays with illegal tariffs based on the rules of the WTO, there will be the paradoxical situation that both E.U. and China might end up contesting these tariffs.
We want, first of all, to solve this issue with U.S. We are convinced that we have a mutual benefit of maintaining strong trade relationships based on low tariff regimes. And now, we have 90 days to negotiate and we will work on that.
At the same time, clearly, E.U. needs to open other avenues. Like in these hours we have seen the announcement by President von der Leyen of new trade negotiations also with United Arab Emirates. And the E.U. also assigned a deal with the South American countries with the (INAUDIBLE) that will need to be now ratified, but new avenues also in South America. So, we want to solve the issues with U.S., but we are not going to just wait for Trump to make his mind.
[18:30:00]
SCIUTTO: Yes. Listen, you have other avenues. Brando Benifei, thanks so much for joining.
BENIFEI: Thank you.
SCIUTTO: And we wish you luck in those negotiations.
BENIFEI: Thank you.
SCIUTTO: Inside Europe, two giants of the fashion world are making their own deal. Prada has bought rival Italian brand Versace to the tune of more than a billion dollars. Prada looking to expand even as consumers buy fewer luxury goods.
Joining me now is Luxury brand strategist, Mario Ortelli. Good to have you on. I mean, listen, do you think Prada and Versace, these are two gold standard brands in fashion, what does it mean to have them together now?
MARIO ORTELLI, LUXURY BRAND STRATEGIST: Well, I think it's a great opportunity for the Prada group because they have acquired one of the brands with the biggest awareness globally, that in the last year was fading a bit, with revenue contracting, negative profitability. But they have got all the ingredients to bring back Versace with sparkle and the combo between the two brands can be great.
SCIUTTO: The price, we should note, that Prada paid is a discount compared to the price that Capri paid for Versace back in 2018, 2.1 billion. Why is that? Why is it worth less today than it was seven years ago?
ORTELLI: Well, because Capri (INAUDIBLE) best way. Basically, if you look at the trajectory of a brand in the last year, there was a contraction of revenues, a contraction of profitability. But despite that, this is a brand with a great heritage. And I believe, as I said before, that the Prada group has got all the capabilities to bring back Versace to its sparkle.
Nowadays, we paid about 1.5 times the sales that -- for a brand of this, I think is a fair price and Prada can make a good value creation out of it.
SCIUTTO: What do tariffs mean for the business? Listen, we're still -- even with the 90-day pause, there are significant tariffs still in place. Does that mean you'll sell less? I mean, these brands will sell less?
ORTELLI: Well, you know, the big problem of tariff is if they dent (ph) consumer confidence. Because basically (INAUDIBLE) the brand that we sell in the U.S. for the big brand that is not enormous because the tariff are calculated on the cost of goods sold, not with final prices to the consumer. These brands have got also pricing power. But clearly, if tariffs continue to be the topic of the day, the American consumer sees the pricing rising and this uncertainty probably does not have the light spirit to spend all the money of -- that has got in his pocket to a new bag or a new pair of shoes.
SCIUTTO: Luxury brand strategist, Mario Ortelli, thanks so much for joining.
ORTELLI: Real pleasure. Bye.
SCIUTTO: And we will have more news just after the break.
(COMMERCIAL BREAK)
[18:35:00]
SCIUTTO: Welcome back to CNN Newsroom. I'm Jim Sciutto. And here are more international headlines we are following today. New York authorities have confirmed now that all six people traveling on board a helicopter that crashed into the Hudson River have died. That death toll tragically includes three children. Authorities say they're now investigating what caused the helicopter to fall from the sky just 16 minutes into its journey.
U.S. Secretary of State Marco Rubio says the U.S. will hold direct talks with Iran on Saturday to discuss Iran's nuclear program. U.S. special envoy, Steve Witkoff, and a senior Iranian leader are expected to participate in that meeting, which will take place in Oman. Ahead of those talks, President Donald Trump has imposed more sanctions on Iran, specifically targeting its oil.
Authorities say the death toll is now 221, following the collapse of a roof a nightclub in the Dominican Republic. Rescue efforts have turned to recovery efforts. It remains unclear just how many people are still unaccounted for. The cause of that horrible deadly disaster still not clear.
The Trump administration is laying out its evidence against the detained Palestinian activist in Columbia University grad student Mahmoud Khalil. A two-page memo from the U.S. secretary of state, Marco Rubio, says Khalil can be deported based on, and I'm quoting here, "his beliefs, statements, or associations" saying they would compromise U.S. foreign policy interests. The memo contains no allegations of criminal activity. Khalil was arrested last month for leading pro-Palestinian activism on campus.
Gloria Pazmino is on the story for us. And, Gloria, you look at the memo, no mention of criminal activity, it's just those positions, right, which Rubio seems to determine is not in U.S. foreign policy interests. Can you explain what happens with this legally now?
GLORIA PAZMINO, CNN CORRESPONDENT: Yes, Jim, you know, it's stunning to read the memo. It's only two pages long, and this was given to the immigration court in Jena, Louisiana where Khalil is being held. And this was the government's evidence. This is being given to the court after they were given a 5:00 deadline of yesterday to submit evidence to back up their deportation order against Khalil. The judge said, bring me the evidence. If you don't bring me the evidence, I'm going to consider not only releasing him, but completely terminating this case. Remember, Khalil is a green card holder. He is a U.S. permanent legal resident, and he's been in detention for over a month now, even though he hasn't been charged of a crime.
Now, the U.S. government has submitted the Rubio memo as proof that these are the reasons why they believe he is deportable. And as you read there, they are quoting, statements or association, beliefs as the reason for why they believe he should be kicked out of the country.
Now, we heard from Khalil's attorneys in the last several hours and they have told me that this is just incredibly thin evidence. And one thing that's been sort of fascinating to watch, Jim, as the case has been progressing, it's important to remember there's two cases unfolding here. One is the immigration proceeding, playing out in Louisiana, and the other one is the federal case where Khalil has sued the Trump administration and he is suing over the legality of his detention. So, that's a separate case.
[18:40:00]
Tomorrow, we are going to have a hearing in the immigration case where this judge is going to make a final determination. His attorneys are very frustrated, even though she has told them that she is going to consider releasing him, and the reason they're frustrated is because they want a chance to go into court and argue against this Rubio memo. They said that all this memo says is that they want to deport him because they disagree with what he has to say, which is something that all of us here are constitutionally protected against, including people who are not U.S. citizens like Mahmoud.
SCIUTTO: The First Amendment applies to U.S. legal residence. So, let me ask you this. Let's say the judge decides tomorrow he should be released or at least not deported, I assume that gets appealed. I mean, is this another Supreme Court case we're going to be following?
PAZMINO: That's exactly right. The government does have the opportunity to appeal the judge's order, and she can decide one of two ways. She can release him on bond and the case will continue to play out in court near where Khalil lives here in New York City. Remember, he was sent down to Louisiana. They've been trying to get him back up to New York so he can be near his wife who is about to give birth in a few weeks. So, the case would continue to play out.
Now, his lawyers would be able to appeal as well and ask for relief. So, it's very unlikely that tomorrow is going to be the end of Khalil's immigration case. But there is a possibility, and we're really just looking at a 50/50 chance here that he may be continued to be detained or that he will be released separately. Remember, Jim, that case in New Jersey, the federal case, his habeas case, challenging the constitutionality of the detention will continue to play out as well.
SCIUTTO: Gloria Pazmino, so much to watch there, thanks so much. Coming up, growing speculation, hard questions in China. This after Beijing's number two general appears to have disappeared. What happened? The details next.
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SCIUTTO: In the background of the widening trade war between the U.S. and China, the second highest ranking official in China's military has disappeared from the public eye. His absence from a recent high- profile event is fueling concerns that he may be the latest and most senior official to be dismissed by Chinese President Xi Jinping. Will Ripley has the details.
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WILL RIPLEY, CNN 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.
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.
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SCIUTTO: Major questions in China. Coming up next, the first golf major of the year begins in Augusta, Georgia. We will be there to see how day one of the Masters has panned out so far.
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SCIUTTO: After 15 months behind bars, a dual U.S.-Russian citizen in amateur ballerina is now free thanks to a prisoner swap. Ksenia Karelina was convicted of treason in Russia after she made a $50 donation to a charity supporting Ukraine. CNN's Matthew Chance has the details.
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MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT (voice-over): These are the first images of Ksenia Karelina being set free, and handed over to U.S. officials in Abu Dhabi to be flown home.
The jewel U.S.-Russian citizen, a beautician and amateur ballerina from L.A. was serving 12 years in a Russian penal colony for treason after donating just over $50 to a charity supporting Ukraine. Her nightmare has now ended with the latest U.S.-Russia prisoner swap.
She was wrongfully detained by Russia for over a year. The U.S. secretary of state, Marco Rubio, wrote on X. And President Trump secured her release, he added.
Back in Russia, the swap was breaking news too, another sign of the warming relations between the Kremlin and the Trump administration. One Russian source tells CNN, the deal was advanced last week. With the key Kremlin envoy, Kirill Dmitriev, playing an important role during his visit to Washington. The source tells CNN that an earlier prisoner exchange involving U.S. teacher Mark Fogel in February, quote, "created additional trust and enhanced cooperation in prisoner exchanges with President Trump's team."
And this is who the Kremlin got an exchange, Arthur Petro on the right. A dual Russian-German citizen being held in the U.S. for allegedly smuggling banned microelectronics to Russia that could be used to build weapons. The FBI said, his arrest in 2023 showed it was resolute in its commitment to stopping Russia from re-arming its military with U.S. technology.
But the war in Ukraine continues to rage. And while Kremlin says talks with the United States are now multitracked, focusing on diplomatic normalization, economic deals, and prisoner swaps. The longer weighted ceasefire demanded by President Trump has yet to be agreed.
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SCIUTTO: In sport, a masterful start to proceeding is at Augusta National in Georgia, where the 89th Masters Tournament has now teed off. World number one reigning champion Scottie Scheffler is hoping to win his third green jacket in just four years, but there is major competition, especially from an English player who loves this course and is looking to complete a career of Grand Slam. Don Riddell is in Augusta with all the day's action. How did it look out there?
DON RIDDELL, CNN WORLD SPORT: It's been a wonderful day, Jim. Welcome to Augusta. And it's been a particularly good day for the defending champion, Scottie Scheffler. As you say, he went out and shot a four under par round in his opening day. And that puts him very much in contention. He's going to be trying to make a piece of history here this week if he can win. Only three men before him have ever successfully defended their title at Augusta and only one man, Jack Nicklaus, has won three green jackets in the space of four years.
So, Scottie Scheffler could do that. He's off to a terrific start, four under par, no bogies today. So, it was a very clean round. Afterwards CNN asked him how he thought of his performance.
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SCOTTIE SCHEFFLER, TWO-TIME MASTERS CHAMPION: I felt pretty good about it. I had a feeling the golf course was going to get pretty firm and, you know, the areas to hit your irons out here are pretty small and they get even smaller when the greens are firm. And so, it was definitely -- there's definitely some challenge to the golf course today, and I'm sure that'll continue as the week goes on.
I think anytime you get closer to the lead, it's going to be easier for you to win the golf tournament. That's just a -- I mean, a simple fact of the matter. You get off to a good start, statistically, you're going to have a better chance to win the tournament.
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RIDDELL: So, the man they're all chasing at the moment is England's Justin Rose. He's 44 years of age. He's a former U.S. Open champion. He's a former Olympic champion. He has come close here before he lost a heartbreaking playoff to Sergio Garcia a few years ago. But he's leading the tournament on seven under par, Jim.
SCIUTTO: Don Riddell, thanks so much. And we do now have some breaking news. This out of the U.S. Supreme Court. It is upholding an order to the Trump administration to facilitate the return of a deportee the administration sent to El Salvador by mistake. It did stop short of setting a deadline.
Just days ago, the court had paused a lower court order deadline to return a Maryland man deported to El Salvador to get more time to review the case. Kilmar Armando Abrego Garcia was deported last month after the Trump administration admitted an administrative error, that's what they called it. He was sent to El Salvador's mega-prison despite a ruling that protected him from deportation. We're going to have more on that news and that decision at the top of the hour.
Thanks so much for joining me today. I'm Jim Sciutto in Washington. Please do stay with CNN.
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