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AI, Innovation and Good Governance at World Governments Summit; Trump to Host King of Jordan at White House; Polish President Says Russia Must Not Win Conflict; UAE Invests Billions into Artificial Intelligence Projects; Vance Warns of Overregulation of AI Industry; Trump Tariffs on Steel and Aluminum; U.S. Defense Secretary on National Security Trip through Europe. Aired 10-11a ET

Aired February 11, 2025 - 10:00   ET

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


[10:00:00]

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BECKY ANDERSON, CNN HOST (voice-over): Well, welcome back to the second hour of CONNECT THE WORLD. I'm Becky Anderson here at the World Governments

Summit in Dubai, where leaders are gathering to talk innovation, AI and getting governments fit for the future. A lot more this hour on all of

that.

But there is one man who, although he is not physically here in Dubai, he casts a long shadow over discussions here. Yes, I'm talking about the U.S.

president.

From imposing tariffs to suggesting that the U.S. can take over Ukrainian minerals in return for support, there is a lot coming out of Washington

that is concerning U.S. allies, such as the president of Poland, who you will hear from in just a moment.

First up, though, this hour, to delve into the view from Europe. We'll have more from my wide ranging interview with the Polish president. We'll also

take a closer look at the centerpiece of WGS, AI and AI innovation.

And coming up very soon, Jordan's King Abdullah meeting the U.S. president at the White House with the future of Gaza front and center.

Donald Trump calling for a U.S. takeover of the enclave and the redevelopment of the bombed out strip, making it clear he wants Jordan,

along with other regional ally, Egypt, to assist by taking in Palestinians forced out of Gaza or risk losing billions of dollars in U.S. aid.

(BEGIN VIDEO CLIP)

QUESTION: Would you withhold aid to these countries if they don't agree to take in the Palestinians?

DONALD TRUMP, U.S. PRESIDENT: Yes, maybe. Sure.

Why not?

You mean if they don't agree?

If they don't agree, I would. I would conceivably withhold aid, yes.

(END VIDEO CLIP)

ANDERSON: Well, over the past few days, the president has repeatedly pushed his idea for a U.S. takeover of Gaza to turn it into, his words, a

Riviera of the Middle East. And he appears unfazed by the near condemnation of the plan, certainly from the Arab world.

(BEGIN VIDEO CLIP)

TRUMP: There's practically no building that's livable in the whole thing and the whole Gaza Strip. I say we go in, we knock them all down.

BRET BAIER, FOX NEWS ANCHOR: You're not saying U.S. troops.

TRUMP: No, you don't need -- no. Israel will watch it because it's right next to Israel.

BAIER: And what's the time frame?

Do you have a time frame?

TRUMP: I would say let it start almost immediately. I would like to get some land from these others. We'll get Saudi Arabia, we'll get some of the

great people. We have incredible people in the Middle East. We'll get these people to finance it. It's not a lot of money.

(END VIDEO CLIP)

ANDERSON: Well, I want to bring in a friend of the show, Stephen Collinson, to talk more about this.

And look, Stephen, in the first few weeks of his second term, Donald Trump has shattered an enormous amount of presidential norms. When he first

floated this Gaza takeover idea and the displacement, the pushing out of Palestinians from the Strip, a lot of political pundits in the U.S. and

abroad weren't sure how serious he was.

But he keeps doubling, if not tripling down on this idea.

What do you make of it?

STEPHEN COLLINSON, CNN WHITE HOUSE CORRESPONDENT: I mean, I think it's impossible to take seriously just because of the impracticability of it.

The idea that the Israelis would be able to go in there and effectively force the Palestinians out, that ignores the huge pain that the Israelis

have had throughout the last decades.

Every time they've tried to go into Gaza with ground troops and stabilize it or occupy it, the president's suggestion also ignores the history that

is the root of the Palestinian-Israeli conflict, the idea of land and dispossession.

And it would probably make the Israeli-Palestinian conflict even worse if all the Gazans were expelled from that strip of land. But at the same time,

the fact that he keeps saying it means you have to take it seriously. You have people in the White House and around the Republican Party saying,

well, this is all part of Trump's genius.

[10:05:00]

Because he's putting the issue on the table. He's going to use this to make a deal. It's all leverage, because they can't say that it's absurd because

basically they're frightened of Trump.

So, I think we just have to watch what happens in terms of policy.

Does anything happen to make this even one tiny step toward reality and just leave the president's comments where they lay?

ANDERSON: Yes. And frankly, at this point, it isn't clear whether this is strict U.S. policy at this point or, you know, whether this is just, you

know, Donald Trump rhetoric. But it is, you know, because he keeps doubling if not tripling down on this, it's important. You know, his words resonate.

Would Donald Trump actually cut aid to Jordan and Egypt?

I mean, he has reiterated this before. Jordan's been one of the United States' closest allies in the Middle East. I just wonder whether history

even matters in this second Trump White House.

COLLINSON: I don't think it matters to the president because, to be frank, I'm not sure that he appreciates all of the history, why the U.S. sends so

much money to Jordan. It wants it to be stable. There's a real deep intelligence relationship between the U.S. and Jordan, which is critical to

U.S. security interests in the Middle East.

The U.S. doesn't want Jordan to turn into Syria and pose a huge security crisis on the border. But yesterday, while the president was talking about,

maybe I will withdraw U.S. aid, it did get me to think about maybe that's what this is about.

If the Jordanians and the Egyptians decide, well, we can't be any part of this plan, that would give perhaps the president excuse to cut or reduce or

get rid of entirely U.S. aid to Jordan and Egypt.

And we know from his actions toward USAID to all of his other measures, he doesn't really see the point in the U.S. sending aid to other countries. He

thinks every country should stand on its own two feet.

Perhaps he tried to push the Saudis to replace U.S. aid to Jordan. So perhaps that's something that's worth thinking about, as if there is a

method to Trump's strategy here. Perhaps that's got something to do with it.

ANDERSON: Yes. I just want to make it really clear that, literally, since I think October the 10th, 2023, I have repeatedly spoken to the foreign

minister in Egypt and the foreign minister in Jordan, both of whom have drawn a red line in the sand when it comes to the idea of displacement from

Gaza into either of those countries.

Both see it not only as an economic risk, a real economic risk to the countries, but these -- this is a national security risk to both of them.

But as things stand, Donald Trump, as we say, doubling down on this idea of, you know, permanent displacement, he says, of Gazans from the Strip.

And it is Jordan and Egypt who are squarely in his crosshairs when it comes to where those Palestinians might go.

At this point, it's going to be it's going to be an interesting meeting for King Abdullah of Jordan at the White House today. It's always good to have

you, Stephen. Thank you very much indeed.

Well, Donald Trump seems to be turning his back on previous U.S. policy when it comes to Ukraine, saying in a FOX News interview on Monday that the

country may or may not be Russian someday. Mr. Trump also said he has told Kyiv he wants something in return for ongoing U.S. assistance. Have a

listen.

(BEGIN VIDEO CLIP)

TRUMP: They have tremendously valuable land, in terms of rare earth, in terms of oil and gas, in terms of other things. I want to have our money

secured, because we're spending hundreds of billions of dollars. And you know, they may make a deal, they may not make a deal.

They may be Russian someday, or they may not be Russian someday, but we're going to have all this money in there. And I say, I want it back.

(END VIDEO CLIP)

ANDERSON: Well, in response to those comments, Kremlin spokesperson Dmitry Peskov said Tuesday, quote, "A significant part of Ukraine wants to become

Russian and has already become Russian."

Well, look, Poland not only shares a border with Ukraine, it also shares the wish that Russia will ultimately not win this war. I sat down with

Polish president Andrzej Duda right here in Dubai earlier today to speak about the future of the conflict and the roles other countries may play in

trying to bring an end to it. Have a listen.

(BEGIN VIDEO CLIP)

ANDRZEJ DUDA, POLISH PRESIDENT (through translator): It will soon be the third anniversary of Russian aggression against Ukraine.

[10:10:05]

The war is still going on and a lot of people around the world, especially those people of goodwill, are asking themselves the question how to bring

this war to an end. And to be more precise, how to make sure that Russia stops attacking Ukraine.

And I keep repeating one thing, as a neighbor of Ukraine, as the one who is watching this conflict and has been watching it from the start, on the one

hand.

But on the other hand, as the one who has been actively supporting Ukraine in defending its sovereignty and independence, we have to make sure, those

people have to make sure that Russia does not win this war.

This is the most important thing: Russia must not win this war. I'm not saying that Russia has to be defeated. I'm saying Russia must not win this

war, which means to me that Russia cannot draw benefit from this war.

This is the most important thing which has to be obtained today by the international community. We, Poland, have been supporting Ukraine right

from the start. Not only have we sent enormous defense military support to Ukraine, we were the first ones who decided to send armaments to Ukraine.

We have donated more than 360 main battle tanks to Ukraine but also other equipment over years. But first and foremost, today we serve as a hub. And

right from the start, Poland has been a transportation hub for Ukraine.

It is through Poland that transports with armaments have been going for Ukraine. It's through Poland that humanitarian support has been flowing to

Ukraine. We have got the only motorway from Western Europe to Ukraine and we have got a big international airport close to the border with Ukraine.

So indeed, the role that Poland is playing is of key importance. What I'm counting on, I'm counting that president Trump, who indeed is speaking out

loud and saying that he wants to bring the war in Ukraine to an end, will come up with and will offer, will implement such solutions, not only

political wins but also economic ones.

Which will force Vladimir Putin to sit down at the negotiating table and will bring this war to an end.

ANDERSON: What's your view on president Trump's ambition to support Ukraine going forward?

But the quid pro quo is that the U.S. gets the rare earth metals that Ukraine has.

Is that acceptable?

DUDA (through translator): Please remember that President Donald Trump, first and foremost is a businessman. And this is the point that I always

repeat in all the discussions, because he has got a business-like style of conducting politics.

He's got a business-like style of speaking about politics. And not all politicians like that. They are not used to it. It's a slightly different

kind of language and slightly different methods of action.

And he took immediately a business-like approach to this. He put it clearly. The United States has already provided huge assistance to Ukraine.

It is true. Nobody else has helped Ukraine so much as the United States.

And it should be stressed and highlighted but it is also important, please remember, that the first who helped Ukraine was nobody else but precisely

Donald Trump. We are speaking about the budget for the Pentagon in 2020, when he was still serving as president in his first tenure.

And already then, he was providing military support to Ukraine, when nobody really was thinking seriously about the war and about Ukraine having to

defend itself.

But today he's saying, OK, what will America have from that?

Are you able to offer anything to America?

Well, this is life and it is hard to wonder, to be surprised that it is also the approach of the president of the United States.

ANDERSON: This is from Mike Waltz, the national security advisor to Donald Trump, reinforcing the Trump administrations position, quote, "The

Europeans have to own this conflict going forward. Trump will end it. And then in terms of security guarantees, that is squarely going to be with the

Europeans."

What is your view on Europe's role?

And would Poland supply troops in the future for the security and protection of Ukraine, specifically?

DUDA (through translator): Well, this is a specific kind of a paradox, I could say, because, on the one hand, the ones who -- and let's be clear and

honest. Those European politicians, let's put it in a subtle way, are not big fans of president Donald Trump.

There is a group of such politicians and we know, more or less, who can be included as a member of this group. They are saying yes. So we have to

tighten European ties. We have to build European security. We have to focus on Europe's military independence in terms of security.

Donald Trump is saying very well, of course, but spend more on defense, invest more in your own security. And it would be best if you could provide

for the security of Ukraine in Ukraine with your own means, European means.

[10:15:05]

ANDERSON: And what will Poland's commitment be?

DUDA (through translator): These two policies are not contradictory to each other but speaking about the contribution to building Ukraine

security, let us remember that today it is precisely Poland who is risking for Ukraine.

Because it was our country which was hit by the missiles during this war. No other state was hit by missiles in Europe. Those missiles hit Polish

territory. We had two casualties as a result of a missile striking the Polish territory because of this war.

So we are the ones who are running the risk. We are exposed to risk because we have got a hub on our territory through which assistance to Ukraine is

delivered. I'm thinking about the air support and this support is transported from Poland to Ukraine.

In Poland we have got the only motorway from Western Europe through to Ukraine. And today we are the key country in terms of support for Ukraine.

And we are providing this assistance all the time.

So whenever somebody is asking about assistance to Ukraine, I'm asking, are you asking ourselves about that?

We are providing help to Ukraine. 24 hours, seven.

(END VIDEO CLIP)

ANDERSON: And that was the president of Poland speaking to me earlier.

Well, the future of AI In focus here. And this week in France and the global race for dominance is on. The latest from the AI summit in France is

up next.

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ANDERSON: All right. Welcome back. I'm Becky Anderson. You're watching a special edition of CONNECT THE WORLD from the World Governments Summit here

in Dubai.

Sam Altman is once again rejecting Elon Musk, who is leading efforts to buy Sam's OpenAI company for nearly $100 billion. Altman had a clear message:

OpenAI is not for sale.

(BEGIN VIDEO CLIP)

SAM ALTMAN, CEO, OPENAI: Elon tries all sorts of things for a long time. This is the, you know, this week's episode. I think he's probably just

trying to slow us down.

(END VIDEO CLIP)

ANDERSON: Well, this is just the latest, frankly, in a long feud between Musk and Altman for control of the company. Musk has filed a number of

legal complaints, alleging OpenAI's leadership has misrepresented himself.

He was, of course, involved at the outset. That's a personal scuffling over controlling artificial intelligence. But as we've been discussing, the race

for global dominance is very much on. The UAE here, the host of the World Governments Summit, is making multibillion dollar investments to position

itself as a key player.

[10:20:00]

Well, last hour I spoke to the UAE's minister for artificial intelligence about the country's strategy. Have a listen.

(BEGIN VIDEO CLIP)

OMAR AL OLAMA, ARTIFICIAL INTELLIGENCE MINISTER, UNITED ARAB EMIRATES: We believe that the world is not going to be bipolar. It's not going to be

unipolar. It's going to be multipolar.

And a country the size of the UAE can have a seat on the table with two things. The same way that we invested in renewable energy, to become a

global leader in renewable energy with Masdar, we can invest in AI and AI Infrastructure to have a seat on the table and to be a main player and

driver of the development of this technology.

And while you actually invest in the infrastructure, you can see who can utilize it. You can see who has growth in terms of its utility and in terms

of its revenue. And you can actually invest alongside these players.

So we have a very long term ambition on AI and we believe that we want to be in the full stack, developing the models, implementing the

infrastructure and working with the talent.

(END VIDEO CLIP)

ANDERSON: Well, meantime, at the AI summit currently going on in Paris, American vice president JD Vance warning against too much regulation in the

industry. Have a listen.

(BEGIN VIDEO CLIP)

J.D. VANCE (R-OH), VICE PRESIDENT OF THE UNITED STATES: When conferences like this convene to discuss a cutting edge technology, oftentimes I think

our response is to be too self-conscious, too risk averse.

But never have I encountered a breakthrough in tech that so clearly caused us to do precisely the opposite.

Now our administration, the Trump administration, believes that AI will have countless revolutionary applications and economic innovation; job

creation, national security, health care, free expression and beyond.

And to restrict its development now will not only unfairly benefit incumbents in the space, it would mean paralyzing one of the most promising

technologies we have seen in generations.

(END VIDEO CLIP)

ANDERSON: That is JD Vance's position on the balance between AI safety and AI innovation.

It's a big conversation out there. CNN's business editor at large, Richard Quest, is with me here at the World Governments Summit.

And you spoke to president Macron of France just ahead of the beginning of this AI summit; Europe, France really trying to ensure that it is competing

on a stage at present dominated, of course, by the U.S. and China.

What did he tell you?

RICHARD QUEST, CNN HOST: Well, the first point, he admitted, is that Europe is not even in the race. He's got mistral (ph). But besides that,

it's not really a player and he's calling on Europe to basically wake up and get on with it.

He says that president Trump's election was that clarion call. But getting from there to there is the difficult part, because no matter that Draghi

has said, you need to have more competitiveness, how you do it is very difficult.

And that's why, when I asked president Macron what he actually thought, how do you do it?

He said there's really no choice. Europe has to get with AI better.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, PRESIDENT OF FRANCE: We need an AI agenda because we have to bridge the gap with the U.S. and China on AI. Otherwise we will consume,

we will use the AI being produced and invented in the U.S. or China. But we will not be the one to control ours.

QUEST: Let me just ask, how much has your thinking and your execution been put on turbocharge by the new administration and its much more muscular,

some would say brutal way in which it's basically saying, we're going to do it. Europe, we're going to do it anyway.

MACRON: Look, I will be very clear. I think the election of president Trump is as well a wake up call, a wake up call on top of the others for

the Europeans. It means you cannot procrastinate anymore.

So this is why I will work very hard to have obviously the backing of France but some key countries, with Ursula von der Leyen and her team, in

order to deliver this package and this agenda.

(END VIDEO CLIP)

QUEST: OK, try and do it. Do it, do it, do it. But it's this difference between concept and execution. And you know what they always say, the U.S.

innovates; China duplicates; Europe regulates.

ANDERSON: I was going to say gets late.

(LAUGHTER)

QUEST: Yes, even better.

ANDERSON: Is rather late to the table. Fascinating, fascinating.

Look, you and I are here at the World Governments Summit and it's got to be said, Donald Trump not here but really dominating discussions at present.

I'm fascinated by what you've been hearing behind the scenes, as opposed to on some of these panels that you and I have been on. I get the sense that

there is -- there is a real fear factor out there from some of the world's leaders.

And we've got a lot of leadership here. You know, a fear of, you know, upsetting Donald Trump.

Oh, that's what I was going to say.

QUEST: No, I mean, you were doing exactly that.

[10:25:00]

You were choosing your words carefully. I think, look, on the one hand, leaders are absolutely agog. They want the animal spirits unleashed. They

want the deregulation. They want all the good bit for business.

But they are terrified of saying the wrong thing in the wrong way and incurring his wrath or the wrath of Elon Musk or the administration,

because the effects could be devastating if they go against you.

ANDERSON: I just want to be clear. I wasn't stuttering my way through that.

QUEST: No.

ANDERSON: I didn't want to upset Donald Trump. I literally couldn't remember what I was going to say.

(LAUGHTER)

QUEST: I have the problem.

I think the issue is, how do you manage?

Look, I looked at the CNN.com's front page and you look at every single story about Donald Trump. Any one of those would be a massive story on a

daily basis. All of them at once, the system can't cope. That's the problem we've got at the moment.

ANDERSON: Yes, no, it's absolutely fascinating.

Richard, have a look at this. Airbus exploring double level airplane seat design.

Can we bring this up?

QUEST: Yes.

ANDERSON: Let's think about this.

QUEST: So they've been playing around. At the end of the day, you have a tube, a metal tube with passengers in it, that -- you've got quite a lot of

high ceiling in something like a 777 or something.

So can you get more in?

And this is an interesting idea. You have one seat here, one seat here. Their feet go under there and it all fits together.

ANDERSON: Bunk bed.

QUEST: It's basically that's what it is. The issues with this seat is how you get people on and off the plane quickly and easily, to people fall off

the upper platforms. But something like this will happen.

And if you ever go to a concept show and you see how they play around seats going backwards, overhead compartments coming across the middle instead of

lengthways, they play with all sorts of designs.

I like this one. I think this one, pardon the phrase, has got legs because you manage to get 1.5 times the seating in the same area.

ANDERSON: Taking advantage of you being here with me.

QUEST: Yes, absolutely.

ANDERSON: Because I knew you'd enjoy that.

QUEST: It's economy though, Becky.

ANDERSON: Is it economy?

QUEST: It's economy. Move on.

ANDERSON: Move on, move on. Richard Quest in the house. Thank you very much indeed.

Still to come, a widening trade war. The U.S. president imposing a new set of tariffs, this time on steel and aluminium or aluminum. Some key U.S.

trading partners vowing to respond.

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ANDERSON: Welcome back. You're watching CONNECT THE WORLD with me, Becky Anderson, from the World Governments Summit in Dubai. Tonight, your

headlines.

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ANDERSON (voice-over): One hour from now, U.S. president Donald Trump meets Jordan's King Abdullah at the White House. And this is a really

important meeting.

[10:30:00]

They are sure to discuss the president's repeated calls for a U.S. takeover of Gaza and his seeming insistence that Jordan, along with Egypt, take in

Palestinians or risk losing U.S. aid.

Well, president Trump has suggested that Ukraine may fall under Russian control someday. He was speaking on FOX News about his proposal for Ukraine

to share its natural resources with the U.S. in exchange for American assistance going forward.

Mr. Trump says he has told Kyiv he wants $500 billion worth of its rare earth minerals.

As I say, I'm in Dubai at the World Governments Summit, an annual event bringing together leaders from government, from the private sector and from

international organizations, to focus on innovation and technology as a tool to solve global challenges now and in the future.

Well, U.S. president Donald Trump not here but certainly looming large over this meeting. He is firing another shot in the trade war he started earlier

this month. On Monday, president Trump signed an executive order, slapping 25 percent tariffs on all steel and aluminum imports into the United

States.

Now these are the countries that are appear poised to take the biggest hit from these new tariffs. President Trump says it's all about reciprocity.

And he claims he's making America rich again.

Well, joining us to discuss this is Philip Bell. He's president of the Steel Manufacturers Association in the U.S.

And you've released a statement applauding president Trump on imposing these 25 percent tariffs on all steel imports, saying, and I quote,

"President Trump is leveling the playing field for American manufacturers and workers and helping America defeat direct threats to our jobs."

So let's start with this first question.

Do you anticipate growth in terms of production and jobs as a result of these tariffs?

PHILIP BELL, PRESIDENT, STEEL MANUFACTURERS ASSOCIATION: Thanks for having me, Becky. And we do. During the first Trump administration, the tariffs

led to about $20 billion in investment to modernize and decarbonize the U.S. steel industry.

And we think that this round of tariffs, which, by the way, President Biden continued, will do the same thing.

Although the U.S. -- let's just get this clear for our viewers' sake -- although the U.S. gets most of its steel from Canada, Brazil and Mexico,

these tariffs are largely, albeit indirectly, aimed at China.

And you say China and other countries routinely violate trade laws and dump heavily subsidized steel products into the United States at the expense of

American workers.

So how did these tariffs target China?

BELL: That's a great question, Becky. And what happens is China takes advantage of the status of Mexico and Canada, our two largest trading

partners, to evade their tariffs by transshipping their steel products into Mexico, into Canada. And then those products find their way into the United

States.

ANDERSON: So why not exempt countries like, for example, Canada?

A friend and close ally of the United States, already threatened with swingeing tariffs and a takeover, quite frankly, of the country by Donald

Trump, who likes to call it the 51st state.

BELL: Well, I think what president Trump is trying to do -- and we think he's going to be successful doing it -- is he's sending a clear message to

our trading partners around the world and particularly to Mexico and Canada, that it is time for U.S. trading partners to get serious about free

and fair trade.

And make sure that they're not aiding and abetting China and other countries, who are trying to circumvent and evade our trade laws.

ANDERSON: Look, much of what you are explaining here may make sense to a lot of people. A lot of other viewers will say, you know, these

protectionist barriers that the United States is putting up with this sort of, you know, American -- America First policy does nothing but detriment

and damage to a sort of global world economy.

A Trump administration official said the new tariffs on steel were designed to eliminate loopholes and numerous exemptions.

[10:35:00]

That has led some importers to game the system. And I think you've, you know, quite, you know, eloquently explained how that how that works.

Can you help us, though, better understand what that means?

And if those loopholes were closed, you know, does the steel and aluminum industry sort of reopen its doors going forward to, again, some of the

U.S.' closest allies?

BELL: Well, that's a great question, Becky. But we have to understand this is a global problem. Even the E.U. itself extended their steel safeguards

through June of 2026 because they're experiencing some of the same problems.

The United States is with bad actors and countries that don't want to follow free market practices.

But one of the things, by closing the loopholes, you do is you prevent other countries from taking advantage of countries that have exemptions in

order to get their steel into the United States.

And I think that that is a very important part, because there's a large volume of steel that will find its way to our shores, whether they have

tariffs on them or not.

ANDERSON: Philip, it's good to have you, an important interview on what is, you know, once again, a very important week for this Trump

administration. We are, of course, only three weeks in. It is a it is a busy time. Very much appreciate your time today, sir.

Well, for a closer look at how president Trump's tariffs on steel and aluminum could impact Canada, CNN's Paula Newton reports from Ontario.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: It's on this factory floor in Canada that Donald Trump's demands for fair trade are being tested.

What are these over here?

ROB WILDEBOER, EXECUTIVE CHAIRMAN, MARTINREA: For the Silverado.

NEWTON: These are parts for the Silverado, a GM truck made in Canada, the U.S. and Mexico. And they're made by Martinrea --

WILDEBOER: These are thousand-ton, tamping (ph) presses.

NEWTON: -- global auto parts supplier with thousands of workers in all three countries.

Trump tariffs would strike at the very heart of this business and its workers in North America, says executive chairman, Rob Wildeboer.

President Trump would say why Mexico, why Canada?

Why can't you just make it all in the U.S.?

WILDEBOER: I don't know anyone in our company that wants tariffs between Canada, the U.S. and Mexico because we work very well as a unit.

We take care of our people everywhere. We make great parts in every jurisdiction and, quite frankly, we benefit from that.

We've got some great plants in Mexico, in the United States and in Canada.

NEWTON: Do you believe a U.S.-made car then would be more expensive?

WILDEBOER: Yes. For sure. For sure.

NEWTON: That's the math, he says. A calculation made every day here as the threat of tariffs hang over one of the most prized manufacturing industries

on the continent.

Canada's auto industry directly employs at least 130,000 people in dozens of towns and cities, including Martinrea's facility in Vaughan, Ontario

just outside of Toronto.

They depend on these stable jobs, as do workers at this Martinrea facility in the U.S. state of Kentucky.

WILDEBOER: I'll put my U.S. hat on, right, because we are an American supplier, we're a Canadian supplier, we're a Mexican supplier. But we have

twice as many people in the United States as we do in Canada.

And in a number of communities, we're the largest employer. So Hopkinsville, Kentucky, Jonesville, Michigan and others, we're a big --

we're a big deal. We're a big deal locally. We take care of a lot of people.

And I would say a lot of those people probably. voted for President Trump. They liked his message of lower inflation, more jobs, stronger economy.

But with the tariffs and so forth, they're getting higher inflation, less jobs, weaker economy.

NEWTON: Despite that pitch, even employees here know what they're up against in the Oval Office. And some told us they approve of Canada

standing up to the threat.

NATIK JARIWALLA, MARTINREA EMPLOYEE: It's going to hurt anyhow. It's like either you deal it right now or in the future.

NEWTON: And it's not just Canada. Trump is challenging the very template of free trade right around the world.

The European Union can see what's coming their way. It has one of the largest trade deficits with the U.S. It too, says it will respond firmly to

any tariffs.

But it is Trump's tough talk about an economic takeover of Canada that cannot be reconciled.

TRUMP: What I'd like to see, Canada become our 51st state.

NEWTON: It's triggered an uncommon anti-American backlash in Canada that may have legs. Booing the U.S. anthem, boycotting American products -- all

of it so far seems to have staying power.

DON PEPPER, BURLINGTON, ONTARIO RESIDENT: Well, I think it's ridiculous.

[10:40:00]

We've been friends for years, traded for years. And then all of a sudden this happens.

NEWTON: For Martinrea's executives and its North American workers, tariffs could still be a reality within weeks, putting at risk a profitable

business and good paying jobs in the U.S. and beyond.

They are asking President Trump, why mess with that?

(END VIDEOTAPE)

ANDERSON: Well, earlier I spoke to E.U. member, Poland's president, and got his perspective on what are these latest tariffs announced by president

Trump.

(BEGIN VIDEO CLIP)

DUDA (through translator): I'm taking a very calm approach to this one. First of all, we are coming back again to the question of language and how

politics is being run.

Donald Trump is running politics in a business like manner. Some people may like it, others may not. He is a person who has spent an absolute biggest

part of his professional life in business.

And it is hard to expect from him that now, when he is a politician, after tens of years of his business activity, that he would suddenly change his

personality, he would change his ways of acting and his language. He is not going to do that. So one has to take him as he is and look for --

ANDERSON: So these are empty threats?

DUDA (through translator): -- and look for -- no. One simply has to talk with him in such a way which is acceptable also for him and which, in a

sense, responds to his expectations.

So he's saying, I'm putting cards on the table. I'm saying this. So we have to adopt a certain way of bargaining. First and foremost, let us look at

what the situation really is like.

Is there an imbalance in the relations between the European Union and the United States?

ANDERSON: And Donald Trump says countries have been ripping off the U.S. for years and he includes Europe in that.

Has it?

DUDA (through translator): Yes. This is exactly my point. So let us look at this.

Is it really so?

Let us sit down. Let experts sit down together. Let us compare the two situations. Let us see what the reasons are for the fact that so many

European cars are there on the roads in the United States and there are so few U.S. cars in Europe on European roads.

The question is, why is that?

So let us answer this question using experts. Let us find out what the reasons are for this situation and the same for other things, because let

us remember one thing. If tariffs are introduced, it will mean an increase in prices.

That increase in prices will have an impact also on the American market. And this is also a result for the American market. On the one hand, perhaps

it will contribute to Americans perhaps buying more U.S. cars because European cars will be more expensive.

But on the other hand, the question is, is it not going to trigger inflation and is it not going to decrease living standards, at the end of

the day, also in the United States?

So there are two sides to each medal (ph).

(END VIDEO CLIP)

ANDERSON: The Polish president speaking to me here at the World Governments Summit in Dubai a little earlier today.

Well, still to come, president Trump slamming the U.S. court system -- excuse me -- as a number of judges temporarily block his plans to reform

the federal government.

Could America be heading toward a constitutional crisis?

Well, more on that after this.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[10:45:00]

(MUSIC PLAYING)

ANDERSON: Right. Happening now in Germany. Let me get you there. The first stop on an international trip for the U.S. Secretary of Defense, Pete

Hegseth, meeting with senior military leaders stationed there. Let's listen in. He's speaking to reporters now.

QUESTION: Strategic aims in Africa are going to change.

PETE HEGSETH, U.S. SECRETARY OF DEFENSE: Well, I think it's a reflection of the importance of that command as well as EUCOM. We spent this morning

at EUCOM as well. Made sense to come to both if we're here in Germany.

But it's also a reflection that, you know, the PRC's intentions are pernicious, not just in their part of the world but also in South America

and on the African continent. And America's posture there, along with allies and partners, is going to matter about contesting that space. So it

certainly remains a priority.

You saw the strike in Somalia on February 1st that, as we talked to the command, that's a reflection also of pushing decision authority down,

untying the hands of war fighters, who, in the previous administration made multiple requests and were often denied for that kind of kinetic action.

Or the decision had to be made at the White House when it should be made at the four star level or at the Secretary of Defense level more quickly,

based on the ability to degrade the enemy. So this is a very important part of the world for us. The president feels that way as well and we're honored

to be here.

Thank you.

QUESTION: Mr. Secretary, are you planning to cut the number of American forces in Europe, shift to the Pacific and focus on China?

HEGSETH: There are no plans right now in the making to cut anything. There are -- there is an understanding that we're going to review force posture

across the world. Right. President Trump's planning assumptions are different in many ways or at least strategic assumptions than Joe Biden's

were.

We certainly don't want to plan on the back of the withdrawal from Afghanistan and what happened on October 7th and the war that was unleashed

in Ukraine. You have to manage and mitigate those things by coming alongside your friends in Israel, ensuring their defense and peacefully

resolving the conflict in Ukraine.

But those shouldn't define how we orient. And with hopefully a rapid peace deal in Ukraine, which the president is committed to delivering, we can

then review force posture and encourage as we're going to -- you're going to see tomorrow in Ukraine and at the Ukraine contact group and the NATO

ministerial.

We're going to have straight talk with our friends. This kind of urgency of this moment requires friends talking to friends about capabilities, about

leadership, about stepping up, about burden sharing and the incentives to say the European continent deserves to be free from any aggression.

But it ought to be those in the neighborhood investing the most in that collective, individual and collective defense. That's common sense, as the

president talks a lot about. Common sense is you defend your neighborhood and the Americans will come alongside you in helping in that defense if and

when that happens.

And I believe it will because of president Trump. You're -- most NATO countries are already close to 2 percent. We believe that needs to be

higher. The president has said 5 percent. I think he's right. That's a reflection of a need to invest on the continent.

If and when that happens through investments in defense industrial base as well, then yes, America, as the leader of the free world, defending

American interests, is going to need to make sure we're focused properly on the Communist Chinese and their ambitions in the Indo-Pacific and, as I

mentioned before, around the world.

So we would be remiss in not reviewing force posture everywhere. But it would be the wrong planning assumption to say, oh, America is abandoning

something or America's leaving.

No, America is smart to observe, plan, prioritize and project power where we need to deter conflict. We don't want conflict with China. We don't want

-- the president has ran (sic) on being a peace president and he's delivered that.

But being strong, peace through strength, is how you deter that. And we want to posture for that. Just like we believe the Europeans, alongside our

support, need to on the continent as well.

QUESTION: Is China the biggest threat to the United States?

HEGSETH: Well, right now, the biggest threat was securing our own border, which we are addressing rapidly. And I'm proud of what NORTHCOM has done

and the Defense Department has done is shifting there.

You don't have a country if you don't have borders, as the president has pointed out and we've been defending other people's borders for a long

time, time to defend ours. So we're sealing that border. We're continuing to doing that.

[10:50:00]

But as far as external threats, there's just no doubt the Communist Chinese ambitions are robust. Their view of the world is quite different than ours

and whoever carries that mantle is going to set the tone for the 21st century.

UNIDENTIFIED MALE: Christine.

QUESTION: You made a point to do PT with 10th Group this morning on very little sleep.

Why was it so important for you to do this?

And tell us about the workout.

HEGSETH: I did do PT with the troops this morning. Listen, I -- it's not that long ago that I was right there with them. I probably -- no offense,

General -- I probably connect more with those guys than I do with four star generals.

But now I get the chance of working with four stars and others who are committed to the troops. But when I can get down, do push ups and dead

lifts with the troops and just hear from them what's working, what isn't, how do you see your mission set, I love that.

So there was never a doubt, even though we got in at 2 in the morning, that we were getting up a couple hours later to go do PT. It's a reminder that

you guys, the press in Washington might think I'm young. But in military terms, I'm old.

And that showed this morning with these young guys who ran circles around me in that parking lot.

(CROSSTALK)

HEGSETH: Go ahead.

QUESTION: Thanks for doing this. You mentioned earlier that president Trump wants to NATO countries to spend 5 percent of their GDP on defense.

Do you think the U.S. should also spend 5 percent of its GDP on defense?

HEGSETH: Well, I think the U.S. needs to spend more than the Biden administration was willing to, who historically underinvested in the

capabilities of our military.

So the president is committed, as he was in the first term, to rebuilding America's military by investing. And you're going to see that in the

conversations on Capitol Hill.

We've already been intimately involved with the folks on HASC and SASC and the Appropriations, talking about the capabilities we're going to need, not

just next year and the year after that or for the next four years but for power projection going forward.

And then the reforms needed to make sure that every dollar goes further. Now at a minimum, we should we should not go below 3 percent. That's a view

I know the president shares. But as far as going forward in that those are decisions he will make based on my consultations with him.

Listen, any Defense Secretary would be lying if they said they didn't want more. You always want more. But we live in fiscally constrained times where

we need to be responsible with taxpayer dollars. We're $37 trillion in debt. That's a national security liability as well.

So we're going to work with Capitol Hill. The president's going to lead the way on making sure the troops have the resources they need and that we

truly rebuild our military, just like president Trump did in the first term.

QUESTION: And President Biden, President Biden vowed against sending U.S. troops into Ukraine.

Would you be open to sending U.S. troops into Ukraine to track weapons shipments?

HEGSETH: We are not sending U.S. troops to Ukraine.

QUESTION: You talked about wanting to welcome Elon Musk and DOGE into the Pentagon, potentially in the next few weeks.

Do you expect him to start unilaterally cutting programs and contracts the way he's done at USAID and other agencies?

And are there any limits or supervision you'd want to place on his team, given his conflicts of interest?

HEGSETH: Well, we've been in touch with -- I've been in touch with Elon Musk, who's a great patriot, interested in advancing the America First

agenda, knows that president Trump got 77 million votes and a mandate from the American people.

And part of that is bringing actual businesslike efficiency to government. Hence what DOGE is doing. We've been talking to them in partnership with

them. And as I said on social media, we welcome DOGE to the Pentagon and I hope to welcome Elon to the Pentagon very soon and his team, working in

collaboration with us.

There is -- there are waste redundancies and headcounts in headquarters that need to be addressed. There's just no doubt. Look at a lot of the

climate programs that have been pursued at the Defense Department.

The Defense Department is not in the business of climate change, solving the global thermostat. We're in the business of deterring and winning wars.

So things like that, we want to look for to find efficiencies and many others, the way we acquire weapons, system procurement.

There's plenty of places where we want the keen eye of DOGE but we'll do it in coordination. We're not going to do things that are to the detriment of

American operational or tactical capabilities. There's just -- the -- president Trump is committed to delivering the best possible military.

The Defense Department is not USAID. USAID has got a lot of problems that I talked about with the troops pursuing globalist agendas that don't have a

connection to America First. That's not the Defense Department. But we're also not perfect either.

So where we can find billions of dollars -- and he's right to say billions -- inside the Defense Department, every dollar we save there is a dollar

that goes to warfighters. And that's good for the American people.

ANDERSON: This is Pete Hegseth, giving his first comments to the press since he became the U.S. Secretary of Defense. He is in Germany. I want to

bring in our chief national security correspondent, Alex Marquardt, who is in Washington.

What did you make of what you just heard?

ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Well, Becky, Pete Hegseth there covering a wide number of subjects. Some notable

comments there at the end about inviting DOGE.

[10:55:00]

Which, of course, was started by Elon Musk to find efficiencies and has already been cutting quite a swath through different agencies here in

Washington, most notably USAID. He said he's going to welcome DOGE to the Pentagon soon, fielding questions about China and the threat that China

poses to the United States.

He made clear that he believes that the most significant threat to the United States is the border policy and what they -- what the Trump

administration has called open borders.

But certainly the theme of the week is going to be Ukraine. Pete Hegseth is leaving Stuttgart after visits with the European Command and African

Command to go and meet with NATO allies tomorrow in Brussels. He said that it's going to be talks among friends.

I think those will be comforting words to those NATO allies, who have often seen Donald Trump as holding them at arms length. Some familiar themes

there from Pete Hegseth about the need to raise defense spending among NATO allies.

Donald Trump says that that NATO members need to spend 5 percent of their GDP on defense spending. No country in NATO does that. Currently, most are

at 2 percent. So that's going to be a message that he's going to be taking to those -- to that NATO meeting.

I think also interesting that he's talking about the need for a rapid peace deal in Ukraine. Donald Trump said that that could get done on day one.

Clearly that has not happened.

But what we're really watching for this week, whether it's at the NATO meeting in Brussels or the Munich Security Conference, where other top U.S.

officials, including the vice president and secretary of state are.

Any indications of what they are developing as a peace plan in Ukraine following some quite scary words for the Ukrainians from the American

president, who said that one day Ukraine may indeed be Russian. Becky.

ANDERSON: And it is fascinating. Pete Hegseth is in Germany. NATO allies should expect open and frank discussions amongst friends, as you rightly

pointed out. It's good to have you, Alex.

That is it for CONNECT THE WORLD. Do stay with CNN. "NEWSROOM" is up next.

[11:00:00]

END