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Fed Chair: Trump Tariffs Likely To Cause Higher Inflation; WTO: Trade War Will Badly Hurt U.S. & Global Economies; Judge Threatens Trump Admin. With Contempt Charges; WTO: Trade War Will Badly Hurt U.S. and Global Economics; Chinese Wholesale Market Grapples with U.S.-China Tariffs; U.K. Court: Legal Definition of "Woman" Excludes Trans Women; DOJ Sues Maine Over Trans Athletes in High School Sports; South African Police Rescue U.S. Preacher from Kidnappers; Family Concerned for detained French American Tourist; "Colossal" Squid Filmed in Natural Environment for First Time. Aired 1-2a ET

Aired April 17, 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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[01:00:31]

JOHN VAUSE, CNN ANCHOR: A tariff warning from the U.S. Federal Reserve sends Wall Street back into the red, ahead here on CNN Newsroom.

(BEGIN VIDEO CLIP)

JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: The level of tariff increases announced so far is significantly larger than anticipated and the same is likely to be true of the economic effects.

(END VIDEO CLIP)

VAUSE: Like higher inflation for longer an economic slowdown, higher unemployment.

(BEGIN VIDEOTAPE)

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT: This case has become a flashpoint in the tension between the White House and the federal courts.

(END VIDEO CLIP)

VAUSE: A feud becomes a showdown with White House officials facing criminal contempt of court charges.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I started hyperventilating. I teared up. We have never seen this animal in the wild before.

(END VIDEO CLIP)

VAUSE: Not so colossal. The first deep-sea images of a colossal squid. This one, but a teenager barely 30 centimeters long.

UNIDENTIFIED MALE: Live from Atlanta, this is CNN Newsroom with John Vause.

VAUSE: A warning over Trump's tariffs from the chairman of the U.S. Federal Reserve sent stocks falling, Wednesday. Jerome Powell is warning an unprecedented U.S. trade policy will likely cause higher inflation for longer, slower economic growth and higher -- an increase unemployment. The markets have been on a wild mostly downright for three weeks now the volatility driven by an unpredictable U.S. President and his on-again off-again tariffs. And Jerome Powell is warning the cost of tariffs on imports will be paid by American consumers.

(BEGIN VIDEO CLIP)

POWELL: And employment is likely to go up as the economy slows in all likelihood and inflation is likely to go up as tariffs find their way and some part of those tariffs come to the -- come to be paid by the -- by the -- by the public.

(END VIDEO CLIP)

VAUSE: Palace words were heard loudly on Wall Street. The Dow tumbled 700 points. The S&P 500 fell more than 2 percent. The Nasdaq also down just over 3 percent. CNN's Richard Quest has more now on palace economic predictions.

RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: This was the first time that Jerome Powell, the chairman of the Fed, had drawn the direct connection between the tariffs and prices being paid by the public. He spoke the truth that the administration has for so long tried to avoid saying that when prices go up, it will be passed down through the economic chain.

But the chair went further. He talked about the macroeconomic difficulties that the Fed was going to place. The Fed has a dual mandate. It has to ensure full employment and price stability. For the last few years, it's been price stability cutting inflation, that's been the number one priority.

But now the chair says that dual mandate could be in his words challenged and could be intention with each other. In other words as the economy slows down because of the tariffs so there could be job losses and inflation will certainly rise. That means the Fed won't know necessarily which one to tackle first. So Jerome Powell made it clear they would deal with which is ever most urgent at that moment.

Seemingly for the time being that would be higher prices. Don't look for cutting interest rates anytime soon.

Richard Quest, CNN, New York.

VAUSE: Standing by in New York is Rana Foroohar, CNN's global economic analyst and associate editor at the Financial Times. Welcome back. Good to see you. RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Hello. Good to see you.

VAUSE: OK. So the Fed chair went on to say not only are Trump's tariffs higher that he expected, they're higher than the tariffs in the Smoot-Hawley Act which led to the Great Depression. This time, palace says expect increased unemployment, slowing economic growth and inflation. Here he is.

(BEGIN VIDEO CLIP)

POWELL: Inflation is likely to go up as tariffs find their way. And some part of those tariffs come to the -- come to be paid by the -- by the -- by the public. Tariffs are highly likely to generate at least a temporary rise in inflation. Inflationary effects could also be more persistent.

(END VIDEO CLIP)

VAUSE: He didn't say it out loud, but it sounds like we have all the elements here for, you know, stagflation and stagflation is the devil.

FOROOHAR: Absolutely, I mean, you know, I dimly remember my parents and gas lines in the 70s, but, you know, it's been a general -- well, more than a generation since we've had stagflation. And so I think a lot of people just don't remember how devastating it was. I mean, you know if you were a new homebuyer you were looking at double-digit mortgages. Slow growth in compressed incomes. It was -- it was a bad, bad time.

[01:05:10]

And it really scarred consumer spending for -- for -- for quite some time. So it's no joke, when Powell talks the way he's talking, it's serious business.

VAUSE: And normally inflation, which we've seen recently, is a result of too much economic activity, right? Prices go up because of increased demand. Maybe employment is high or there's a stimulus which was too much. And we saw over the past two years how the Fed actually deals with inflation by -- by increasing interest rates. But stagflation is a whole different story. That's why it's so bad, so hard to deal with.

FOROOHAR: A hundred percent. So ordinarily, if the economy was booming and -- and running really hot, as it actually did during the -- the Biden administration, you know, we would see some interest rate hikes. Now, you know, that -- that slows things down. It makes borrowing costs higher.

But it's a -- it's a good tool to bring down inflationary periods when they're normal. But right now, when you're looking at an economy that's already slowing, a market that is incredibly volatile. And, you know, we have to remember how much of the economy is based on the wealth creation, the wealth effect, not just in housing, but to a certain extent in stocks. And then you've got the one tool that the Fed has, which is to hike interest rates coming at a time when there's a slowdown. Boy, that is -- that's a recipe for a lot of pain. And, you know, frankly, a lot of people in the markets are expecting just that. There's some pretty dire scenarios out there.

VAUSE: Well, China put out their first quarter GDP growth numbers is much stronger than expected, 5.4 percent. That number is from a world without Trump tariffs. So now those tariffs are in effect. The World Trade Organization is forecasting a very big hit to the global economy. Listen to this.

(BEGIN VIDEO CLIP)

NGOZI OKONJO-IWEALA, DIRECTOR-GENERAL, WORLD TRADE ORGANIZATION: Our estimates suggest that global GDP would be lowered by nearly 7 percent in the long term. This is quite significant and substantial.

(END VIDEO CLIP)

VAUSE: To say the least. So when she's talking about broader fragmentation along geopolitical lines, is she talking about a world where there's a pro-U.S. trading bloc, maybe a pro-China trading bloc and neither trades with the other?

FOROOHAR: That is a possibility. You know, we could be looking at a hard decoupling. It's really stunning as well, because I would say that the Trump administration is taking a very odd approach to this, not just in terms of the absolutism, but in terms of the industries that they're -- they're thinking about. I mean, in the Biden administration, you had selective decoupling. And even during Trump one, you had selective decoupling and things that were very strategically significant chips, technology. Now you've got this sort of across the board decoupling in areas that don't really even matter. Furniture, textiles, you know, there's just no sense in it.

VAUSE: You know, the WTO and others are now lowering forecasts for economic growth for individual countries for the rest of the year and next. But what seems to be truly staggering is how all of this can be traced directly to one man, not a pandemic, not a global financial crisis, not a dot com bus directly to one man whose decision making appears to be erratic and unpredictable whose understanding of how tariff policy works as a tool of fiscal policy is at best flawed. And as Powell noted, this is unprecedented.

FOROOHAR: Yes. Oh, 100 percent. It's -- you know, I -- I have to say I -- I wrote a column recently that likened the U.S. to an emerging market, because in some ways this is behavior that you see in developing countries, you know, countries with less stable economies, with more corruption, with -- with volatile politics.

You know, when Trump says, OK, tariffs on everyone, the market collapses and then he says, buy stocks now. That's the kind of behavior you see from Vladimir Putin or Erdogan in Turkey. You know, I mean, these are -- these are very, very concerning and unprecedented moves for any U.S. president. And it -- it really, I think, represents the end of an era.

VAUSE: Yes. And what is next is the -- is the question, which we will find out in no time, I'm sure. Rana, thank you. Good to see you.

FOROOHAR: Thank you.

VAUSE: Live to Seoul now, is CNN's Mike Valerio who's following news on the tariff standoff and trade war. You know, when it comes to negotiating trade deals, there's two schools of thought. Get in first when White House officials may be more flexible. We'll sit back and watch and learn, which is what seems Seoul is doing right now with the Japanese delegation.

MIKE VALERIO, CNN CORRESPONDENT: Yes, but they still want to get in, John, as soon as possible. They're looking at what Tokyo has been able to do in the White House with the Japanese delegation, led by Ryosei Akazawa, who is Japan's minister of economic revival. He's leading the trade talks.

And let's put up the photo that President Trump posted a few hours ago, seeming to indicate positive development. So this is Minister Akazawa right there by the Resolute Desk. Not shown in the picture is him receiving an autographed red MAGA hat. But also Shigeru Ishiba, the Prime Minister of Japan, seemingly indicating that things are heading in the right direction. Japan getting in there first. People in Seoul, government ministers, industry leaders, also want to get in rather than, you know, sitting off to the sidelines and watching for as long as possible.

[01:10:27]

Because President Trump is seeming to indicate that if you get in first, you're going to get a better deal. You know, John, we have these huge auto exporters, Hyundai, Kia, General Motors that exports from the road over there, about an hour down the road, the Port of Incheon, General Motors sending cars to the United States. They want to deal ASAP, Japan and South Korea, because the economies are not in super shape and they want the certainty of a deal to sort of be the counterweight to all of the economic uncertainty that has been caused by the administration in Washington, D.C.

So let's go to some comments from Akazawa. He tell -- he was telling reporters, quote, we're very grateful that President Trump met with us. The President never strongly stated, subquote, this is what we're going to do, but rather said, Japan is the top priority in the talks. He went on to say we would like to continue to make concerted government effort to give the highest priority and full force.

So it seems as though Prime Minister Ishiba was saying they're going to continue talks later this month. Not too many days left in the month, but they're going to have a round two before April ends. South Korea is going to get into the inner workings of the Trump administration next week. The finance minister getting in there.

And then we have China where there is no movement. So we were talking about in the last hour, John, our reporting, according to a person familiar with Beijing's thinking, the government's thinking, and lines that we did not talk about last hour is that the source is trying to convey that there needs to be an attitude adjustment from Washington, and there also needs to be larger concerns addressed in anticipation of a large trade deal.

That includes Taiwan, the question of Taiwan, and also U.S. sanctions that are directed towards China. The -- the person who's familiar with the government's thinking also goes on to say that China wants no more provocations. China seems to be responding to all of these moves made by the U.S., but from Beijing's point of view, they've gone out of their way to address concerns like fentanyl. I think D.C. would vehemently disagree with that.

So we have movement from South Korea and Japan going nowhere fast, seemingly, when it comes to China, John.

VAUSE: Mike, thank you. Mike Valerio there in Seoul with a little, I guess, directions of where everything is around the capital. Thank you.

Displacement camps in southern and northern Gaza were hit by deadly Israeli strikes overnight, according to Palestinian officials, who say at least 15 people were killed in strikes on two tent cities. Fire swept through both camps. Several people were also reported injured.

Israel says it's turned about 30 percent of Gaza into what it calls a security perimeter buffer zone. According to earlier reporting by CNN, the buffer zone is about a kilometer wide and is off-limits to Palestinians. Many homes and buildings have been systematically destroyed in those areas, and many Palestinians who have been -- have been shot or killed are simply trying to enter the zone.

The United Nations says Israel has ordered some 400,000 Palestinians to evacuate since a fragile ceasefire ended last month, and according to the U.N., more than two-thirds of Gaza is now either under active displacement orders or is designated a no-go zone by Israel. Militant group Islamic Jihad has released the first video of an Israeli soldier held hostage in Gaza. Rom Braslavski was likely speaking under duress. He appealed to the United States, as well as Israel, to end the war, also to cut a deal for his release.

Braslavski's family says he is barely recognizable and looks sick. The move came just days after Hamas released a video of Edan Alexander, the only surviving American hostage still in Gaza. It's believed 59 hostages are still being held by militant groups, mostly Hamas, in the territory.

Well, a federal judge threatening a criminal contempt charge against the Trump administration details on this extremely rare ruling on deportation flights to El Salvador.

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Also, some groups in the U.K. celebrating a landmark Supreme Court ruling which says trans women should not be legally defined as women. A report from London in a moment. (COMMERCIAL BREAK)

VAUSE: This is now day 88 of the second Trump administration. And for most of those days, the White House, from the President on down, have waged a bitter feud with the federal judges whose rulings have blocked or slowed many of the administration's controversial policies.

But that feud could soon be coming to a head, with officials at the Justice Department facing a rare but very real threat of being held in criminal contempt of court. That's all in a ruling from federal judge, James Boasberg, after the Trump administration violated his emergency order, which was meant to stop last month's forced deportation of hundreds of men accused of belonging to a violent criminal gang.

Despite the court's restraining order, two of three deportation flights left the U.S. for El Salvador, where the 238 men are still being held in a notorious mega prison. In a 46-page-long ruling, Boasberg writes, the government's actions on that day demonstrate a willful disregard for its order, sufficient for the court to conclude that probable cause exists to find the government in criminal contempt. The U.S. Justice Department is planning an appeal saying the alleged gang members were legally deported under the very rarely used Alien Enemies Act of 1798, claiming they're all part of an invasion of the U.S.

[01:20:21]

More details now from CNN's chief legal affairs correspondent, Paula Reid.

REID: This case has become a flashpoint in the tension between the White House and the federal courts. And here, Judge James Boasberg, who has repeatedly been attacked by President Trump, has found that the government's actions last month when it came to deportations under the Alien Enemies Act, specifically the fact that they did not turn around.

Planes full of migrants who were being deported to El Salvador after the judge ordered them to be sent back constitute a willful disregard of his order. Now, the Justice Department has argued he'd overstepped his bounds. He's trying to interfere in questions of foreign policy. But now he says he will begin contempt proceedings unless these migrants are given an opportunity to have their cases heard.

Now, the Supreme Court weighed in on this larger issue, the use of the sweeping wartime authority, the Alien Enemies Act, to facilitate deportations. And it found that the administration can use this act as long as the individuals who are deported have a court hearing. So it does appear that Boasberg is just sort of endorsing what the Supreme Court said.

It is also a little bit surprising that he is pursuing contempt because, again, the administration won on the larger issue for now at the Supreme Court. But it is clear the administration says it will fight this.

Paula Reid, CNN, Washington.

VAUSE: Joining me now from San Francisco is Erwin Chemerinsky. He is the dean of the UC Berkeley School of Law. Thank you for being with us.

ERWIN CHEMERINSKY, DEAN, UC BERKELEY SCHOOL OF LAW: Good evening.

VAUSE: So I want you to hear a little bit more from that ruling by Federal Judge James Boasberg. He wrote this. The Constitution does not tolerate willful disobedience of judicial orders, especially by officials of a coordinated branch who've sworn an oath to uphold it.

So despite that, the administration appears to have violated the Constitution and defied court rulings to stop those violations -- violations rather multiple times, almost at will. What happens if the criminal contempt charge becomes a reality and the Trump White House simply ignores it? Then what?

CHEMERINSKY: Well, then Judge Boasberg can hold them in contempt of court. He would refer it to the United States Department of Justice to prosecute. It's unlikely that the Trump Justice Department would do so. But then, as Chief Judge Boasberg points out, he has the authority to appoint a private lawyer to bring the prosecution for criminal contempt. What's important to remember here is whether his order is legal or not, orders must be complied with until they're vacated or overturned. He's absolutely right to say the government defiance of his order is contempt of court.

VAUSE: Usually just the mere suggestion of being held in contempt is enough to rectify any issue a judge may have in court. Instead, the U.S. President has actually gone after Judge Boasberg like this. Listen to this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Many people have called for his impeach -- impeachment, the impeachment of this judge. He's radical left. What do you do when you have a rogue judge? He's a lunatic.

(END VIDEO CLIP)

VAUSE: That was back in March, and other judges have also been publicly criticized for rulings which went against the President. Do you see this as part of a strategy here by the White House to try and undermine the judiciary, the independents, also to intimidate judges?

CHEMERINSKY: It is definitely a strategy to intimidate judges. Never in American history has a judge been impeached or removed because of disagreeing about rulings. I know of no other instance where a President is referred to a judge as a lunatic. And Chief Judge Boasberg has a reputation of being a moderate, not a liberal at all.

VAUSE: And we see the White House which continues to apply a Supreme Court ruling to facilitate the return of Kilmar Abrego Garcia, the man who was mistakenly sent to a mega prison in El Salvador. And on Wednesday, there was part of the evidence put forward by the Trump White House justifying Garcia's deportation. Listen to this.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: When Kilmar Abrego Garcia was originally arrested, he was wearing a sweatshirt with rolls of money covering the ears, mouth and eyes of presidents on various currency denominations. This is a known MS-13 gang symbol of hear no evil, speak no evil, see no evil.

(END VIDEO CLIP)

VAUSE: If Garcia was given the right to due process, that stuff, I guess, we would never hold up in court. It seems the administration is not justifying the Supreme Court, but the response to the order for Garcia's return seems to be openly mocked by many within the administration.

CHEMERINSKY: First, there's no authority in the United States to put anybody in a prison in El Salvador. No matter what Garcia did or didn't do, the government is acting illegally and housing people in El Salvador.

[01:25:05]

Second, an attorney for the United States government admitted to the court two weeks ago that Abrego Garcia was apprehended by mistake. This has now been, it seems, invented by the government.

And third, a judge has ordered that he be returned to the United States, and the Trump administration is saying, once somebody is in El Salvador, no court has the authority to order the return. That's chilling, because then the government could take anybody, citizen or non-citizen, dissidents, and put them in El Salvador, and no court would be able to provide protection. We've never seen anything like that before in American history. We've never seen a President claim such power in American history.

VAUSE: And just very quickly, what does that mean for the Constitution and for this constitutional crisis which may already be underway?

CHEMERINSKY: We are in a constitutional crisis, but I think that this is the most important issue. If a President can violate the constitutional laws and ignore court orders, then the President can do literally anything. And then it's not a democracy, not under the Constitution, then it's a dictatorship. Hopefully we'll never come to that point.

VAUSE: From your lips to God's ear, Erwin Chemerinsky, thank you so much for being with us. Your time is very much appreciated.

CHEMERINSKY: Thank you.

VAUSE: A U.S. senator who traveled to El Salvador to meet with Kilmar Abrego Garcia was not allowed into the notorious mega prison where Abrego Garcia has been held for more than 30 days. Maryland Democrat Chris Van Hollen says his request to speak with Abrego Garcia by phone was also denied. The senator says he'll continue to press for Abrego Garcia's release, adding that more members of Congress will be visiting El Salvador on his behalf.

(BEGIN VIDEO CLIP)

SEN. CHRIS VAN HOLLEN (D-MD): I'm asking President Bukele, under his authority as president of El Salvador, to do the right thing and allow Mr. Abrego Garcia to walk out of a prison, a man who's charged with no crime, convicted of no crime, and who was illegally abducted from the United States.

(END VIDEO CLIP)

VAUSE: Last week, El Salvador's president visited the White House and said he has the authority to release Abrego Garcia, but added it would be, quote, preposterous to smuggle a terrorist into the United States. Garcia's lawyers say he's not been charged with any crime in the United States, nor was he charged with any crime in El Salvador. He left when he was 16, and he is not a member of any gang, nor does he even have tattoos.

The Trump administration initially admitted in court that he was mistakenly deported because of a clerical error. They now deny that, and alleging he is a member of the MS-13 gang.

And the White House is accusing Van Hollen and other Democrats of caring more about the plight of Abrego Garcia than that of Maryland mother murdered by a Salvadoran fugitive two years ago, even though the two cases are in no way connected whatsoever. The victim's mother appeared with the White House press secretary on Wednesday.

(BEGIN VIDEO CLIP)

PATTY MORIN, VICTIM'S MOTHER: Why are we not protecting the American citizens? It's just common sense. Why are we not protecting our children? And to have a senator from Maryland who didn't even acknowledge, or barely acknowledged, my daughter and the brutal death that she endured, leaving her five children without a mother, and now a grandbaby without a grandmother, so that he can use my taxpayer money to fly to El Salvador to bring back someone that's not even an American citizen. Why does that person have more right than I do, or my daughter, or my grandchildren? I don't -- I don't understand this.

(END VIDEO CLIP)

VAUSE: Victor Martinez-Hernandez was convicted on Monday of the rape and murder of Rachel Moran. He attacked the mother of five while she was exercising on a popular trail near the city of Baltimore. A lawyer for her family says they are relieved justice has finally been served.

[01:29:16]

Still to come here on CNN, sticker shock is coming for Americans hooked on cheap Chinese imports. Wholesalers warning Donald Trump's trade war is already forcing them to increase prices.

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[01:34:38]

VAUSE: The World Trade Organization has a dire economic forecast because of the Trump tariffs. New report says trading prospects have deteriorated sharply since the announcement of reciprocal tariffs predicting global trade will shrink by 0.2 percent compared to an earlier forecast of an increase of 2.7 percent.

[01:34:55]

VAUSE: The WTO says North America will see the biggest slowdown in economic growth, but the effects will be felt around the world.

(BEGIN VIDEO CLIP)

NGOZI OKONJO-IWEALA, DIRECTOR-GENERAL, WORLD TRADE ORGANIZATION: A decoupling between the two major economies could have far-reaching consequences if it were to contribute to a broader fragmentation of the global economy along geopolitical lines into two isolated blocs.

Our estimates suggest that global real GDP would be lowered by nearly 7 percent in the long term. This is quite significant and substantial.

(END VIDEO CLIP)

VAUSE: It might be April, but by now factories in China which make Christmas decorations would normally have their orders in from the United States. But not this year.

Trump's tariffs have seen a surge in the price of everything from Christmas decorations to hats, even a few MAGA ones as well and that's having a huge effect on business.

CNN's Marc Stewart reports now from China.

(BEGIN VIDEOTAPE)

MARC STEWART, CNN CORRESPONDENT: It's Christmas every day at this factory in eastern China. This is all going to the U.S., but the holiday cheer has soured since the start of President Trump's trade war. Hefty tariffs have hiked the price for these decorations sold to the U.S. Now their cost will be so steep, Americans just won't buy them.

How much money have you lost because of canceled business?

RAN HONGYAN, BUSINESS OWNER (through translator): About more than 1 million yuan.

STEWART: That's about $135,000. From the factory floor to her showroom, Ran Hongyan says she's lost revenue and relationships.

How does that make you feel?

HONGYAN: It makes me feel sad because we have been working together for a long time, but our deals have stopped due to the tariffs.

STEWART: At first, she offered to slash prices for her longtime customers, hoping to suck up some of the costs. Now, the tariffs are so high, most of her American customers canceled their orders completely.

It's stories like this we're hearing from exporters here in Yiwu, one of the largest wholesale markets in the world. It's really ground zero in this trade war that's tearing apart the world's two largest economies.

So, how long has your family had this business?

LI XINYAO, BUSINESS OWNER: It's about 30 -- more than 30 years. America's always impact the world. Yes. When they start the trade war, all the people will worry about that.

STEWART: Do you think America is acting badly?

XINYAO: Of course, I think so.

STEWART: Last year, vendors here sold around $11 billion worth of these items to the United States. But even before Trump 2.0, China saw this trade war coming.

To beat the fear, exporters are already diversifying. Right now, half of Nie Ziqin business is with the U.S. She tells me she's not worried.

NIE ZIQIN, WHOLESALE VENDOR (through translator): My next step is to transfer my U.S. sales route to the E.U. Last year we also began designing products we can sell to the Chinese domestic market.

STEWART: But it's a two-way street. American consumers rely on places like this for the things they want at the price they want to pay, including something that has become an unmistakable symbol.

Look what we found in the middle of this market, Donald Trump's trademark hat made in China.

American shoppers have long been hooked on cheap Chinese products. Giving them up might not be so easy.

Marc Stewart, CNN in Yiwu, Eastern China.

(END VIDEOTAPE)

VAUSE: A ruling by the Supreme Court in the United Kingdom could have consequences around the world. The court ruled the legal definition of "woman" excludes transgender women. Wednesdays decision will also have sweeping consequences for the application of equality laws.

CNN's Salma Abdelaziz reports now from London.

(BEGIN VIDEOTAPE)

SALMA ABDELAZIZ, CNN INTERNATIONAL CORRESPONDENT: How do you define a woman by law? The United Kingdom's highest court just ruled that the legal definition of a woman excludes trans women.

The British Supreme Court's unanimous decision also says, quote, "that the concept of sex is binary. A person is either a woman or a man," end quote.

This is as it pertains to the application of the country's equality laws. Transgender people will still have legal protection, the court says.

PATRICK HODGE, DEPUTY PRESIDENT, SUPREME COURT OF THE UNITED KINGDOM: The unanimous decision of this court is that the terms "woman" and "sex" in the Equality Act 2010 refer to a biological woman and biological sex.

But we counsel against reading this judgment as a triumph of one or more groups in our society at the expense of another.

ABDELAZIZ: Outside the courtroom, it was For Women Scotland that was celebrating, the campaign group that brought the case, which challenges guidance from the Scottish government that a trans woman with a gender recognition certificate is legally a woman and therefore entitled to sex-based protections.

[01:39:54]

ABDELAZIZ: The group argued those protections only apply to people that they say are born female. J.K. Rowling, a supporter of the group has donated to them, according to U.K. media outlets.

The Scottish Greens, the political party, said the ruling was a huge blow to some of the most marginalized people in our society and concerning for human rights.

While the ruling stems from a debate in Scotland, it is a decision that will have sweeping consequences for how equality laws are applied across all of the U.K. and its impact will be closely watched by transgender activists around the world.

Salma Abdelaziz, CNN -- London.

(END VIDEOTAPE)

VAUSE: The public feud between the president of the United States and the Democratic governor of Maine over transgender athletes escalated Wednesday, with the Justice Department now suing Maine over a refusal to comply with the president's ban on trans athletes in high school sports.

This all began back in February with a verbal sparring match.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You are not going to comply with that?

GOV. JANET MILLS (D-ME): I'm complying with state and federal laws. TRUMP: Well, we are the federal law. Well, you better do it. You

better do it because you're not going to get any federal funding at all if you don't.

Your population doesn't want men playing in women's sports. So you better -- you better comply because otherwise you're not getting any federal funding.

MILLS: See you in court.

TRUMP: Every state -- good, I'll see you in court. I look forward to that. That should be a real easy one.

(END VIDEO CLIP)

VAUSE: The lawsuit seems to be a direct result of a challenge issued last month by Education Secretary Linda McMahon.

(BEGIN VIDEO CLIP)

LINDA MCMAHON, EDUCATION SECRETARY: If you could have heard the young women who were standing on either side of Attorney General Pam Bondi and me this morning who talked about the years that they spent training to be in these sports, giving up so much of their extracurricular time to do something that they loved. The injuries they sustained in their training and their practice.

And so then suddenly they are, you know, bettered, if you will, in the sport or beaten in the sport by a male. So you have to take their feelings into consideration.

It's one -- it's more than one. So I think you have to look at all of the young women that can be displaced by these actions.

And this again is a federal law. This is not, you know, this is an executive order, but it is also federal law. And I think that states would be, you know, well-warned to pay attention to that.

The Department of Education had done this investigation into the state of Maine, and we actually turned our findings over to the Department of Justice because we thought that it would -- that they should take a look at it and Attorney General Bondi said, absolutely. And she brought this suit forward.

(END VIDEO CLIP)

VAUSE: Here's part of the response from Maine Governor Janet Mills.

"This matter has never been about school sports or the protection of women and girls, as has been claimed. It is about states rights and defending the rule of law against a federal government bent on imposing its will, instead of upholding the law.

Federal Judge Woodcocks ruling of last Friday awarding the state a temporary restraining order reinforces our position that the federal government has been acting unlawfully." In a moment here on CNN, he went kite surfing in Colombia and somehow wound up in a Venezuelan jail and hasn't been heard from in months. More in a moment.

[01:43:15]

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VAUSE: Sudan's bloody civil war enters the third year. The paramilitary rebel group fighting for control of the country has declared its own government. The leader of the Rapid Support Forces released a statement saying his government is of peace and unity and is building the only realistic future for Sudan.

Mohamed Hamdan Dagalo claimed to have a broad civilian coalition. This declaration of a parallel government complicates peace efforts, coincides with an escalation in fighting.

The Sudanese army recently ousted the RSF from the capital, Khartoum. But the rebel group still controls key areas, including much of the Darfur region.

This conflict has killed more than 10,000 people, left millions displaced, set off the world's worst humanitarian crisis, according to the U.N.

In South Africa, a kidnaped American preacher has been rescued by police amid a gun battle and is miraculously unharmed. Gunmen grabbed 45-year-old Josh Sullivan during an evening service last Thursday in South Africa's Eastern Cape Province.

Police received a tip off about his abductors location in a nearby township and then came the rescue mission. As officers approached, suspects inside a vehicle, attempted to flee and opened fire.

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LT. COL. AVELE FUMBA, SPOKESPERSON, EASTERN CAPE POLICE: The team tactically responded and managed to neutralize the suspect. And the three of those suspects were fatally wounded.

The victim was recovered inside the vehicle and medically checked and was unharmed. The victim, who had been allegedly kidnapped in (INAUDIBLE) location in Gqeberha, was safely reunited with his family.

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VAUSE: What was meant to be a kite-surfing vacation in Colombia has become a living nightmare for a French American tourist. His family says he's been detained in Venezuela for more than three months, taken by Venezuelan troops just across the border.

CNN's Isa Soares reports.

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ISA SOARES, CNN CORRESPONDENT: This is how Sophie Hunter found out her brother had been arrested.

LUCAS HUNTER, DETAINED IN VENEZUELA: I don't want you to freak out. I was caught by the Venezuelans and four hours have passed.

[01:49:50]

SOARES: With a voice message, a location pin placing him on Venezuelan soil.

Her 37-year-old brother, French American Lucas Hunter, had been traveling around northern Colombia to kite-surf along the coast, sending Sophie regular updates about the places he was visiting.

But on January 7th, he told her something different.

SOPHIE HUNTER, SISTER OF LUCAS HUNTER: I was riding my scooter. I got a bit lost. I came close to a border checkpoint. I reversed and I got grabbed, that's the word he used, by Venezuelan military forces.

They took me across the border. I think maybe --

SOARES: They continue to text for the next 24 hours. But then the messages stopped.

S. HUNTER: Since the 8th of January, 1 p.m. local time, we haven't heard from him. We have no idea where he is. The governments have no idea.

Venezuelan authorities haven't responded to our request for information. For now, it is unclear where Hunter is being held.

But the last group of Americans to be released from Venezuela were held here at this high-security prison on the outskirts of Caracas called Rodeo Uno.

Activists say that this is the prison where those who challenge the government are held, but also dozens of foreigners.

DAVID ESTRELLA, FORMER PRISONER IN VENEZUELA: They could do anything they want. Put it that way. And they did.

SOARES: Until January, David Estrella was one of those Americans accused by the government of wanting to bring down Maduro. He says he was just a tourist. Inside, he says he was tortured and made to feel insignificant.

ESTRELLA: They said -- many times they say, we, you know, we can disappear you, eliminate you. You don't exist in this country. They were right. You didn't exist there. So, like they said, they can make a hole in the ground and shoot you and disappear and nobody knows.

SOARES: Venezuela denies any allegations of torture, but Estrella was only released on January 31st after President Donald Trump sent special envoy Richard Grenell to negotiate directly with Maduro, the first U.S. official to do so in years.

UNIDENTIFIED MALE: I can't believe we're here.

SOARES: Five other Americans went home with Estrella, but Hunter wasn't among them.

S. HUNTER: Obviously, I was a bit sad. However, I was very happy that some of the Americans got out because for me, that meant maybe we can understand more about the conditions.

SOARES: The State Department says Hunter is unjustly detained and continues to seek the release of all Americans. Ten in total arrested by the regime in Venezuela.

Months after he was supposed to come home, Lucas' flat in Paris now bears the marks of his absence. His family have kept his things intact, certain he'll be back.

S. HUNTER: He's, you know, strong in everything. I also know that he has a soft side inside. And that's why I'm a bit worried for his mental health, for his asthma, and how he can keep his spirits up.

SOARES: Isa Soares, CNN -- London.

(END VIDEOTAPE)

VAUSE: In a moment here on CNN, a deep-sea creature captured on camera for the first time ever in its natural environment. Why scientists are so excited to finally catch up with this very elusive creature.

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[01:54:53]

VAUSE: Scientists say they've found the strongest evidence yet of possible life on another planet. Using the James Webb space telescope, researchers detected two gases which on earth can only be produced by biological organisms like algae.

The possible biosignature came from a large exoplanet about eight times bigger than earth and 124 light years away in the constellation Leo.

Here's the study's lead author.

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NIKKU MADHUSUDHAN, ASTROPHYSICIST, UNIVERSITY OF CAMBRIDGE INSTITUTE OF ASTRONOMY: Not only that there is a chance that the planet can actually be habitable. But what we are finding is that we are demonstrating that it is possible to detect biosignatures around -- in atmospheres of such planets around nearby stars with existing facilities. And that's a big breakthrough.

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VAUSE: As for answering that big question, are we alone? Scientists say not so fast. The findings are promising, but they still have not found actual living organisms, and they do stress a lot more research is needed.

Well, scientists studying the deep sea say they are very excited after finally catching the elusive colossal squid on camera in its natural environment for the first time. And it's not the only creature they've managed to find underwater.

(BEGIN VIDEO CLIP)

AARON EVANS, GLASS SQUID EXPERT: I started hyperventilating, I teared up. We have never seen this animal in the wild before.

UNIDENTIFIED FEMALE: We've known about the colossal squid for a century, but this is our first confirmed footage of the mysterious creature in its native habitat.

EVANS: We could think of this maybe as a -- as a teenager squid. It's not quite an adult. It hasn't fully matured yet. It's still got a lot of growing to do.

UNIDENTIFIED FEMALE: The colossal squid will grow up to an estimated 23 feet long, weighing as much as half a ton. The largest squid species on earth.

And it's not the only underwater animal the team of explorers and scientists working with the Schmidt Ocean Institute found during its last two voyages to study the deep near antarctica.

EVANS: This is Galiteuthis glacialis. This is the first time it has been seen alive. And again, it reiterates (ph) that a lot of the deep- sea animals are actually really fragile or really beautiful.

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VAUSE: Thank you for watching CNN NEWSROOM. I'm John Vause.

Please stay with us. Kristie Lu Stout picks up our coverage after a very short break. See you right back here tomorrow.

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