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New 'Forced Labor' Tariffs on U.S. Imports Now in Effect; Saudi Nuke Deal in Doubt as Trump Adds Israel Conditions; Trump Ally, Ukraine Critic Laura Loomer Changes Tune after Trip to Kyiv. Aired 6- 6:30a ET

Aired July 24, 2026 - 06:00   ET

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

BRAD SMITH, CNN ANCHOR: -- Easter egg. So, here's how you find it. Google "Jimothy," and he'll run across your screen.

[06:00:08]

It's believed that he has short spine syndrome, which is a rare disorder that makes it look like he has no neck. But for him, it's just a totally normal day. Friday here for Jimothy the raccoon on Google.

Well, that does it for CNN HEADLINE EXPRESS. I'm Brad Smith. CNN THIS MORNING with Audie Cornish starts right now.

AUDIE CORNISH, CNN ANCHOR: All right. Today we're talking about President Trump finding a new way to impose tariffs. Is that going to hold up? And does it mean you are going to pay more?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We can't keep rolling over for President Trump. We can't back down. I'm tired of the bully, trying to take our lunch money all the time.

(END VIDEO CLIP)

CORNISH: And the White House saying the Saudi nuclear deal is off unless the country recognizes Israel. Could that condition kill this agreement before it even starts?

And then Laura Loomer, of all people, going to Ukraine. She meets President Zelenskyy and becomes a believer. Can she now change minds inside MAGA on Russia and the war there?

And a new poll suggests Americans are losing faith in capitalism. Is that what's fueling the rise of Democratic socialists like AOC and Mayor Mamdani?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't think Republicans are taking this seriously enough. I don't think Republicans realize that he's really the best messenger for this.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

JAMIESON GREER, U.S. TRADE REPRESENTATIVE: For over 100 years, the United States has had a law on the books prohibiting the import of goods made with forced labor. This is common sense, and we've enforced this law to prohibit it.

(END VIDEO CLIP)

CORNISH: So, a new round of U.S. tariffs now in effect, this time with a new justification.

Good morning, everybody. I'm Audie Cornish, and we start with those tariffs that kicked in at the stroke of midnight.

Sixty trading partners -- Europe, China, Canada, Mexico -- all facing tariff rates between 10 to 12.5 percent. Just about everything is included except oil, gas, and things that cannot be sourced here in the U.S. locally.

The Trump administration accuses these trading partners of failing to crack down on forced labor.

Remember, the Supreme Court actually shot down Trump's previous efforts to install tariffs by emergency back in February. And here's how he responded back then.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: The court doesn't show great spirit toward our country, in my opinion. A lot of bad decisions, but there are usually ways around it.

We're using things that some people thought we should have used in the first place, but it's more complicated. It's a little more complicated. The process takes a little more time, but the end result is going to get us more money. And I think it's going to be great.

(END VIDEO CLIP)

CORNISH: So, joining me now in the group chat, Elliott Williams, CNN legal analyst and former federal prosecutor; Terry Schilling, president of the American Principles Project; and Lulu Garcia-Navarro, CNN contributor and journalist, host of "The New York Times" podcast, "The Interview." I hope you are subscribed.

I want to start with you, Elliott --

ELLIOT WILLIAMS, CNN LEGAL ANALYST: Yes.

CORNISH: -- because what I'm under the impression is that the reason they lost the first time around on tariffs is because they were like, it's an emergency. Emergencies are everywhere. And now it's tariffs.

WILLIAMS: Yes. CORNISH: And the court was like, Mm.

WILLIAMS: Yes, not so much.

CORNISH: Now they've come back with this other justification about labor. And here are some examples from Greer. I just want to play one more.

WILLIAMS: Yes.

CORNISH: Here he is on CNN on Thursday, explaining these labor violations in different countries.

(BEGIN VIDEO CLIP)

GREER: Just a couple of weeks ago, U.S. Customs and Border Protection came out with findings of a company in Jordan where there were forced labor conditions found.

Malaysia is another one. A couple of years ago, there were some findings that some of the palm oil orchards or groves in Malaysia had that.

And so, Customs and Border Protection regularly does these investigations. And so those are some U.S. findings.

(END VIDEO CLIP)

CORNISH: So, it's interesting, the president saying it'll take a little longer doing it, you know, the legal way. Can you talk about this?

WILLIAMS: That's exactly what the Supreme Court was suggesting when they ruled before.

You were exactly right, Audie. Under the prior scheme, the administration just simply declared an emergency. Everything's an emergency. Now, we're going to tariff everything. And that was struck down.

Here, these are imposed under what's called Section 301 of international -- or American tariff law. Ultimately, that, if there are findings -- and notice, he used the word "findings" multiple times there --

CORNISH: Yes.

WILLIAMS: -- of forced labor, or at least allegations of them, the United States can impose tariffs for some time.

These have actually been challenged in court before, because they've been used before in American history. Not commonly.

CORNISH: Yes.

WILLIAMS: But we have. CORNISH: And this section of the law?

WILLIAMS: Yes.

CORNISH: OK.

WILLIAMS: And so, they're on much stronger legal ground here than the ones before, which were just baseless. Yes.

CORNISH: And here's what else has changed since then.

WILLIAMS: Yes.

CORNISH: You've got an angrier Canada with new leadership. And you've got a business community that actually had a legal win in court in terms of getting those tariffs refunded.

[06:05:09]

WILLIAMS: Right.

CORNISH: So, here's how things are playing out on the ground. This is an art business owner in Texas who was asked about the previous tariffs, getting the refunds, and what their life has been like as a result.

(BEGIN VIDEO CLIP)

NATASHA MCREE, SMALL BUSINESS OWNER: We went from spending 7 or $8,000 a year in tariffs to ten times that.

It's going to allow us to keep the doors open. It's going to allow us to pay off some of the bank loan that we had to incur in order to stay open. And it's going to allow us to -- to become profitable again.

(END VIDEO CLIP)

CORNISH: Here's someone, a neighbor to the North, a Canadian citizen, reacting to the idea of tariffs. Here's how they're seeing it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: No one likes tariffs. I mean, it's counterproductive. I mean, when it becomes counterproductive, it -- it does affect manufacturing. It does affect a lot of industry.

UNIDENTIFIED FEMALE: Ten years ago, I would feel that Canada and U.S. friends, right? They support each other economically and politically, even. But now, of course, it's like the situation is way worse now.

(END VIDEO CLIP)

CORNISH: I feel like the average person is far more educated on tariffs than they were before the president came into office. Good or bad thing for him now? TERRY SCHILLING, PRESIDENT, AMERICAN PRINCIPLES PROJECT: I think it's

a -- it's a good thing. I think it's really good that he's continuing to fight for this.

We need to keep as much money here as we possibly can. I think that's the one thing that a lot of people miss when we're talking about tariffs is, yes, it might be a 10 to 12 percent tariff on top of that, but you're keeping 100 percent of that money here instead of sending it to China.

I will just say I'm from the Midwest. Back in 2012, there was this Sensata plant in a city called Freeport, Illinois. I know about it, because my dad was running for Congress.

That company packed it all up, shipped it over to China. But before they did that, they forced the American workers to train their Chinese counterparts.

There's, like, a humiliating aspect to this, but also there is a hidden tax through these free trade and favored nation status agreements.

CORNISH: Yes. Right now, I think --

SCHILLING: That costs us.

CORNISH: -- looking at the polling, "Washington Post"/ABC News poll, this was back in February. When they were asking the public, "Do you approve of how Trump handles tariffs," 64 percent disapproved.

So, the distance between the argument you're making, the argument the White House is making, looks like there's a big gap there.

LULU GARCIA-NAVARRO, CNN CONTRIBUTOR: Yes. First of all, the very fact of what the legal maneuvers are shows that they are trying to justify something that isn't really about the thing they're justifying it with.

CORNISH: A solution in search of a problem.

GARCIA-NAVARRO: They don't care about forced labor. Yes, exactly. They're -- they're -- now it's forced labor. Before it was emergencies.

The fact of the matter is, Trump likes tariffs. And so, the entire Republican Party has coalesced around them.

There's two things I want to say about this. First of all, tariffs, as we know, as we really know now, are attacks on consumption. So, we know that things are more expensive because of tariffs. And they hurt manufacturing in this country, because things still need to be imported. And they become more expensive for American manufacturers and, therefore, the American consumer. That's the first thing I'll say.

The second thing I'll say about this is the reason now that the Trump administration is addicted to tariffs, which they are, is because of the national debt, which is a real problem. And they're getting --

CORNISH: And they helped them bring in money last time.

GARCIA-NAVARRO: Right. That's what I'm saying.

CORNISH: Money came in.

GARCIA-NAVARRO: Brings a lot of money in, and that helps the administration finance the things that they want.

So now, the tariffs are actually a big part of the way that they look at how to pay for the things that the government wants to pay for. So --

CORNISH: Yes.

GARCIA-NAVARRO: -- this is really what this is.

CORNISH: I think we'll be talking about it more, because we haven't talked on this show yet about the debt. It's a real issue. The debt hawks have flown away. I don't know. They don't talk about it anymore. But the rest of us are curious, so stay tuned for that.

In the meantime, we're going to talk about Democrats and what's driving the rise in Democratic socialism. There's a new FOX News poll suggesting that the answer may be people's problems with capitalism.

Plus, the White House adding a major new condition to that Saudi nuclear deal. Is that going to put the whole thing at risk?

(COMMERCIAL BREAK)

[06:13:48]

(BEGIN VIDEO CLIP) SEN. ED MARKEY (D-MA): This is a terrible day. It is the -- it is the dawn of a new nuclear arms race in the Middle East. It's only going to get worse and worse.

The world right now should tremble.

(END VIDEO CLIP)

CORNISH: So, less than 24 hours after that nuclear deal with Saudi Arabia is signed, President Trump upends the whole thing. He's threatening to pull the agreement unless the Saudis normalize diplomatic ties with Israel by signing the Abraham Accords, something that they have resisted.

The agreement was signed the day before, without that condition.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Why was that condition not mentioned yesterday when the energy secretary announced it? KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: Well, look, the

president is always the final dealmaker, as you know, and this is something that he has mentioned.

(END VIDEO CLIP)

CORNISH: And the deal would give access to U.S. technology for a civilian nuclear energy program. Some are concerned it could lead to Saudi Arabia seeking to develop military-grade uranium.

So, I'm bringing in Gideon Rose. He's a distinguished fellow at the Council on Foreign Relations. He's talked a lot about this.

Thank you so much for being with us, Gideon.

GIDEON ROSE, DISTINGUISHED FELLOW, COUNCIL ON FOREIGN RELATIONS: My pleasure.

CORNISH: So, I heard at the start Markey, Senator Markey there saying like, everyone should be trembling. This is start of a new age.

What is it about a civil nuclear program that would make someone say something like this?

ROSE: So, the idea there is the civil nuclear program could lead to the accumulation of material and expertise, which could ultimately lead to a military nuclear program, which could ultimately lead to a nuclear arms race throughout the region and the world, and that this, essentially, will be the end of nonproliferation.

I think that's overblown, because this particular deal is probably not going to lead to that. It may not even come about, because they keep putting new conditions on.

But in the longer run, the question of will there be more proliferation is a real and interesting question. So, not as dire as Senator Markey said, but an interesting question to keep your eye on down the road, as the United States withdraws from providing a security umbrella to its allies.

CORNISH: You know, to your point, Donald Trump, in a Truth Social post, says the civil nuclear deal, he mentions "there will be no enrichment of material" is being made. He says it pertains to nonmilitary uses.

He mentions the thing we've been talking about, that this is "subject to Saudi Arabia joining the very respected and successful Abraham Accords."

He also goes around to say that, look, we're not opposed to civil nuclear facilities. And of course, Iran and others are pointing out, well, we want to have a civil, you know, civilian use nuclear program, and you don't want that.

Can I play for you this sound of Marco Rubio describing what he thinks is happening, how this could work? (BEGIN VIDEO CLIP)

MARCO RUBIO, U.S. SECRETARY OF STATE: Any agreement that we would make on civil nuclear energy with Saudi Arabia or any other country is going to have safeguards in place to ensure that those cannot ever be turned into a weapons program. I mean, that's -- that's the gold standard.

And obviously, we live in a new era. There are competitors that we face. So, we'll have to adjust individual deals to that reality.

(END VIDEO CLIP)

CORNISH: What are the safeguards? Like, how does that work in this day and age?

ROSE: So, the -- the safeguards are common form of things you can't do; things you have to have in terms of inspections; things you have to monitor; and -- and prohibitions on what you're allowed to do with the technology and personnel.

But the real question here isn't so much this immediate deal. I mean, that's the immediate news story.

But the bigger picture here is, if the United States withdraws from the world and withdraws from providing security for its allies, playing as leader of a team, then why should other allies not arm themselves?

The basic deal of nuclear proliferation was you don't have to worry about protecting yourself with nuclear weapons, American allies, because we will protect you.

But if we're no longer protecting you and we're saying, hey, you're on your own, its America first, then why wouldn't somebody want nuclear weapons? It just becomes a question of the difficulty and cost and risks of getting there.

So, right now, probably not going to happen. But if you're South Korea, if you're Poland, you're looking at this, and you're going, I can't really depend on the United States. Do I really need to develop an independent nuclear capability?

And that's the big worry. Once we withdraw from the world, what will happen after American power and security guarantees?

CORNISH: I was listening to you talk about this on a podcast, and you were sort of rattling off the dictatorships where they had gone after nuclear weapon, or where they had not, and what the results were for them. And that you're saying people are taking away lessons from this, even this experience with Iran.

ROSE: Yes. And -- and so, I mean, look, Ukraine gave up its nuclear weapons. Libya gave up its nuclear weapons, and they got attacked.

And North Korea didn't give up its nuclear weapons, and they didn't get attacked.

If you're looking at this, you're going, OK, maybe it's dangerous to try to get nuclear weapons. But once you do get them, you have a get- out-of-jail-free card, and you're secure from foreign attack.

And so, the real danger here is that, in a very dangerous world with the United States not providing security for its allies, eventually, other nations are going to realize if we can't depend on them, and we really have to depend on ourselves. If the United States is no longer a security guarantor, but a predator itself, or at least indifferent, then why shouldn't we go nuclear?

It's a voluntary nonproliferation regime. There's no giant law that says you have to do this, that people don't. If they don't want to do it, they won't do it.

So, we may be seeing eventually the gradual erosion of a nuclear nonproliferation regime, because it was connected to the liberal world order, the American-sponsored postwar order that the Trump administration is essentially walking away from.

CORNISH: OK, that's Gideon Rose. Gideon, thank you so much. Really appreciate it.

ROSE: Thank you.

CORNISH: Now, after the break on CNN THIS MORNING, the U.S. and Iran continue to trade strikes. It's the 13th day in a row, and the conflict is once again threatening global shipping.

[06:20:05]

But first, we're going to talk about one of MAGA's loudest voices, now defending Ukraine. We're going to talk about the shift from Laura Loomer, who says she's now had a change of heart.

Good morning to our viewers in Madison, Wisconsin, a live look just before the sunrise.

(COMMERCIAL BREAK)

[06:24:35]

CORNISH: Nothing like a few air raid sirens to change your perspective.

Trump ally and podcaster Laura Loomer showing up in Ukraine for a face-to-face sit-down with President Volodymyr Zelenskyy.

And Loomer has spent years downplaying Russia's invasion of Ukraine to her nearly 2 million followers online. And now this week, she has had a change of heart.

She posted this: "Just experienced my first air raid in Ukraine, sirens blaring. This is everyday for every Ukrainian. I often said, I don't care. Looking back, that wasn't very nice of me to say." Loomer also asked Zelenskyy about his ever-changing relationship with

President Trump.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: The tone has changed, absolutely. We had first, like changing moment in Rome, in the Vatican. Yes. It was not long meeting, but I always said that it's, I think, historic moment, because we -- we changed the relations during 15, 20 minutes.

(END VIDEO CLIP)

CORNISH: So, the group chat is back. I wanted to talk about this, because this just isn't a shift in foreign policy thought.

Loomer has gone after Zelenskyy in such a specific and intense way. And at one point she tweeted, "I feel like such an a-hole for minimizing the struggle of Ukrainians for the last five years." This was when an interview -- this was on X.

And then in an interview with "Puck," she said, "I often said, I don't care."

You know, what do you think is behind her even going to have the conversation with Zelenskyy in the first place? Because this is somebody who -- she called him a fake Jew at one point, right? Like, I'm shocked she took the invitation.

SCHILLING: No, she -- she throws tough punches. And you've got to respect her for that. I don't know what the motivation.

GARCIA-NAVARRO: No, you don't. Sorry.

SCHILLING: Well, I don't know. I kind of like it.

GARCIA-NAVARRO: Calling someone a fake Jew? No.

SCHILLING: I'm not saying that.

GARCIA-NAVARRO: OK? I just want to -- I --

SCHILLING: I don't like that. God.

GARCIA-NAVARRO: OK.

SCHILLING: Let's be charitable. OK, but I think the -- the bigger picture here is that the change in posture with Zelenskyy, right?

He's now, because of J.D. Vance and Marco Rubio and how they've teamed up with him, instead of that first meeting at the White House when he was kind of insolent and, I would say, even entitled, he's now changing. He's working with MAGA influencers to get their support over.

He knows the free -- the free checks and the free rent's over, and he's going to have to start courting the conservative movement.

CORNISH: David Axelrod, Democratic strategist, saying, quote -- actually, no, we can play this, I think. He said this on CNN on Thursday.

(BEGIN VIDEO CLIP)

DAVID AXELROD, CNN CHIEF POLITICAL ANALYST: My goodness, the things one has to do to save their country. And I think he decided this is something he had to do to save his country because, you know, she -- they call her an influencer, but the person she influences that he cares about is Donald Trump.

UNIDENTIFIED FEMALE: Yes.

AXELROD: And if this is what it takes, then this is what he's going to do.

(END VIDEO CLIP)

WILLIAMS: Yes. You know, I'm so glad that David used the word "influencer" there, because can I be cynical for just a moment?

CORNISH: Yes, go ahead.

WILLIAMS: Look, we live in a culture of memes and Internet.

CORNISH: Yes. I call it edgelord diplomacy.

WILLIAMS: It's edgelord diplomacy. And Laura Loomer has been more masterful than anyone else at capitalizing on the media and people's ability to -- to -- to click on her stuff.

And to some extent, this is trending. This is --

CORNISH: It is trending.

WILLIAMS: It's behavior designed to get attention. And she's done it.

CORNISH: But also --

GARCIA-NAVARRO: But what is it? But what does it say, though?

WILLIAMS: Oh, it's terrible.

GARCIA-NAVARRO: I mean the -- no, no. No, no. Not that. But what is actually -- what does this mean for American diplomacy?

WILLIAMS: Yes.

GARCIA-NAVARRO: Does this actually -- the reason this is trending and we're all interested is does this actually signify that there is a change of tone materially from this administration, which has been hostile to Ukraine on this issue, and the MAGA universe, writ large?

Listen, there is a lot happening in that sphere with Israel. Now with Ukraine. Are we seeing a shift? That is why -- you know, who frankly, cares what Laura Loomer is or isn't experiencing at any time? But we care --

CORNISH: Yes. It means. She's speaking out against the voices that are criticizing the White House. Right?

So, take a Tucker Carlson, who's been very critical of foreign wars. Laura Loomer put out this tweet, where she is criticizing something that Tucker had said.

And she says Russian state media is amplifying Tucker "Qatarlson" -- because there's a whole thing where they think he's backed by Qatar -- and his "latest lie, that you're allowed to hate Russians because 'they are white.'"

Her response? "News flash: Ukrainians are white, too. Please enjoy this video of Vladimir Putin kissing the Quran." And she posts a video along with it.

There's a lot packed into this.

WILLIAMS: There's a lot.

CORNISH: There is a lot. "Disgusting submission to a death cult by an absolute coward."

So, this person has gone from being like, Ukrainians, give me a break. They need to shut up, to injecting the whiteness conversation like Tucker.

It is the right-wing patois of all the things in one tweet, but it does set up a different dynamic. Now all of a sudden, you have a very powerful voice in that world, punching back at a Tucker.

GARCIA-NAVARRO: I would say this is also something to do with 2028. Very much, J.D. Vance is aligned with the anti-Ukraine. He was the actual mastermind behind that moment with Volodymyr Zelenskyy.

CORNISH: He's the one who spoke out in the Oval. Yes.

GARCIA-NAVARRO: He was the one who spoke out. He's the one who kind of set up that dynamic in the Oval Office.

And of course, you have the Marco Rubio, who has always been very anti-Russia, and very pro-Ukraine and supporting Ukraine.

And so, there is a lot more going on here than just Laura Loomer.