Return to Transcripts main page

Early Start with Rahel Solomon

New CNN Poll Shows Concerns Over U.S. Economy Growing; Trump Pledges Reciprocal Tariffs Amid Trade Tensions; Canada, E.U. Hit Back At Trump Tariffs In Escalating Trade War; Ukraine Agreed To U.S. Ceasefire Plan But Russia Has Not. Aired 5-5:30a ET

Aired March 13, 2025 - 05:00   ET

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

[05:00:32]

RAHEL SOLOMON, CNN ANCHOR: Hello, and a warm welcome to our viewers joining us from the U.S. and all around the world. I'm Rahel Solomon. It is Thursday, March 13th, 5:00 a.m. here in New York.

And straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The United States of America is going to take back a lot of what was stolen from it by other countries. If they charge us 20 percent or 10 percent or 2 percent or 200 percent, then that's what we're charging them.

DOMINIC LEBLANC, CANADIAN FINANCE MINISTER: We matched dollar for dollar the American tariffs at the same percentage.

SEN. JOHN THUNE (R-SD), MAJORITY LEADER: Here we are on the brink of a government shutdown, which will be entirely of the Democrats making if it happens.

SEN. JOHN FETTERMAN (D-PA): We can't ever allow the government to shut down.

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: What would be worse, a shutdown or the C.R.?

UNIDENTIFIED MALE: They're both horrible.

UNIDENTIFIED FEMALE: The new directives coming out of the Trump administration are to really intimidate school districts from teaching Black history and Black books.

(END VIDEO CLIP)

(MUSIC)

SOLOMON: And we begin this hour with new CNN polling just released, and it shows concerns about the U.S. economy are growing in the first months of Donald Trump's return to office. A CNN poll found that 51 percent of those surveyed think that Trump's policies have actually worsened economic conditions in the U.S., 28 percent say that they have improved the situation, while 21 percent say that they've had no effect.

And when it comes to Trump's ratings for his handling of the economy and inflation, 44 percent approve of his job so far. That's a number that mirrors his overall approval rating, which stands at 45 percent.

Now, one spot of positive economic news this week came on Wednesday. That's when data showed that consumer inflation slowed more than expected in February. And then just a few hours, were going to get another look at the issue with the release of the latest producer inflation or the producer price index report.

That report comes at a time of concern among manufacturers about trade related uncertainty. The president's economic policy has already rattled the markets with an escalating trade war, only adding to concerns as more tariffs are expected to be imposed in just weeks.

Trump, meantime, had this to say about his plans.

(BEGIN VIDEO CLIP)

TRUMP: It's called flexibility. It's not called inconsistency. It's called flexibility. But there will be very little flexibility once we start. April 2nd is going to be a very big day for the United States of America.

The United States of America is going to take back a lot of what was stolen from it by other countries.

We're going to be doing reciprocal tariffs. So whatever they charge us with, we're charging them. Nobody can complain about that. Whatever it is, it doesn't even matter what it is. If they charge us -- if they charge us 25 or 20 percent or 10 percent or 2 percent or 200 percent, then that's what we're charging them.

(END VIDEO CLIP)

SOLOMON: The U.S. president also threatening to take further action after Canada followed the European Union and announcing retaliatory measures against tariffs imposed by the Trump administration on all steel and aluminum coming into the U.S.

Mark Carney, who is set to be sworn in tomorrow as Canada's next prime minister, says that he's ready for talks with the U.S. president.

(BEGIN VIDEO CLIP)

MARK CARNEY, CANADIAN PRIME MINISTER DESIGNATE: I'm ready to sit down with President Trump at the appropriate time, under a position where there's respect for Canadian sovereignty, and we're working for a common approach, a much more comprehensive approach for a trade.

(END VIDEO CLIP)

SOLOMON: Now, the tit for tat trade moves have some U.S. companies bracing for economic pain, and many Americans saying that they feel uneasy.

CNN's Sherrell Hubbard has more on fears of an escalating trade war.

(BEGIN VIDEOTAPE)

SHERRELL HUBBARD, CNN CORRESPONDENT (voice-over): Countries around the globe aren't backing down.

REPORTER: Will you respond to their retaliation?

TRUMP: Of course, I want to respond.

HUBBARD: But neither is President Donald Trump. And trade war fears have consumers and businesses caught in the crosshairs.

DOUG FULLER, IOWA SOYBEAN FARMER: Who could blame them putting reciprocal tariffs on us, you know? It's just a -- it's just a match, you know? And nobody's going to win.

HUBBARD: Wednesday's U.S. tariffs were met with swift retaliation from Canada and Europe. Canada announced a series of measures.

DOMINIC LEBLANC, CANADIAN FINANCE MINISTER: So what we did is we matched dollar for dollar, the American tariffs at the same percentage.

HUBBARD: The European Union also swiftly retaliated, imposing tariffs on up to $28 billion worth of U.S. goods exports. The markets were mixed at close Wednesday, but some economists warn that the odds of a recession are rising.

UNIDENTIFIED MALE: The economy is strong. It came into the year doing very well, but it can't digest the kind of tariffs that were talking about here.

[05:05:06]

HUBBARD: The 25 percent toll on all U.S. imported steel and aluminum threatens to drive up prices on a broad range of consumer and industrial goods for Americans.

UNIDENTIFIED MALE: Houses and cars are bundles of steel and aluminum. He is imposing an onerous tax upon the middle class right now.

HUBBARD: Democrats argue that Americans will be the ones picking up the tab for the president's policies.

REP. HAKEEM JEFFRIES (D-NY): Donald Trump and House Republicans are crashing the American economy in real time.

HUBBARD: I'm Sherrell Hubbard, reporting.

(END VIDEOTAPE)

SOLOMON: Meantime, lawmakers on both sides of the aisle are looking for answers as Trump's on again, off again tariff policies cause uncertainty across the country.

(BEGIN VIDEO CLIP)

SEN. TODD YOUNG (R-IN): That said, I've called for more clarity to be brought to individual tariff lines so that our farmers and manufacturers know how long this is going to last, what exactly the tariff structure is going to look like. And it's really important that we have certainty.

REP. KATHERINE CLARK (D-MA): Just look at the split screen. People can't afford their rent. They can't afford eggs. And what is Trump doing? He is hawking luxury car brands of his biggest donor on the White House lawn, the same day he is slashing the Department of Education in half, going after 180,000 teachers whose jobs depend on federal funding.

(END VIDEO CLIP)

SOLOMON: Meantime, financial leaders and strategists say that the uncertainty over President Trump's tariffs and the resulting trade war is paralyzing American consumers and businesses, and it's already hurting the economy. Take a listen.

(BEGIN VIDEO CLIP)

LARRY FINK, CEO, BLACKROCK: People are pausing. They're pulling back, talking -- talking to CEOs throughout the economy, I hear the economy is weakening as we speak. So, you know, the whole question, and I think that's a natural response because we're uncertain. We're uncertain what will the tariffs have the impact on our company.

ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH: You have investors that are stepping back and de-risking their portfolios, and you likely have consumers that are putting off, you know, making major large purchases. So it's -- we call it the uncertainty tax. And that just basically slows down the economy. And this can become very self- fulfilling. The longer we have this uncertainty, because the -- the administration continues to move the goalposts on what were actually trying to accomplish with the tariffs and trade war.

(END VIDEO CLIP)

SOLOMON: And with just a few hours to go until the opening bell on Wall Street, let's take a look and see how futures are. Futures are actually pointed lower this morning despite a better day yesterday. Obviously it's been a turbulent week. We did get that better than expected inflation report yesterday. But I will say that we are expecting a different inflation report in just a few hours. We'll see how investors digest that.

Coming up for us, Russian President Vladimir Putin makes a surprise visit to the occupied Kursk region, but he's yet to respond to the U.S. proposal for a cease fire in Ukraine. We are live in Moscow after the break.

And this scary sight leading to classes being canceled at Texas Tech, a manhole explosion shutting down the massive university campus. We'll take you there.

And chances are, you know someone who may look like their dog. Or maybe you look like your pup. Maybe I look like my pup. I'll show you some pictures and we'll tell you what science has to say about your pet preferences a little later in the show.

(COMMERCIAL BREAK)

[05:12:51]

SOLOMON: Welcome back.

The conflict in Ukraine looks set to dominate a busy day of international diplomacy. NATO Secretary General Mark Rutte will visit the White House in the coming hours, while G7 foreign ministers continue their talks in Canada.

The U.S. secretary of state, Marco Rubio, arriving in Quebec Wednesday. Although he skipped the welcome reception last night to focus on issues related to the 30-day ceasefire between Russia and Ukraine that was proposed by the U.S.

Now, while Ukraine has accepted the U.S. proposal, so far, Russia has not. But President Vladimir Putin did put on a military uniform Wednesday and made a surprise visit to the Kursk region, which is invaded by Ukraine last year. Moscow is claiming significant gains in the area.

Now, according to a Russian state media, Kremlin spokesperson says that the operation to oust the remaining Ukrainian forces from Kursk is in its final stages. The White House, though, is calling on Russia to focus on the ceasefire proposal and get it signed.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The Ukrainians have agreed to a ceasefire. The Ukrainians have agreed to the peace plan that was put on the table yesterday in Saudi Arabia by the secretary of state and our national security advisor, and we urge the Russians to sign on to this plan.

This is the closest we have been to peace in this war. We are at the 10th yard line, and the president is expecting the Russians to help us run this into the end zone.

(END VIDEO CLIP)

SOLOMON: All right. Let's get to CNN senior international correspondent Fred Pleitgen, who joins us now from Moscow.

Fred, great to have you this morning.

Just give us an update on what's happening on the battlefield and the significance, really, of these claims from the -- from the Kremlin out of the Kursk region. FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah. I mean, I think it's highly significant for the Kremlin that they believe that they're making significant advances there in the Kursk region. One of the interesting things, Rahel, that the Kremlin and also other politicians here in Russia have continued to tell us is that they believe that any sort of negotiations about peace in Ukraine, about a possible ceasefire, should exclude anything that happens in Kursk.

The Russians say they do not want that to be part of any negotiations. They want to take that area back militarily or want the Ukrainians to leave that area immediately.

And I think yesterday the visit by Vladimir Putin to that area was highly significant for the Russians.

[05:15:02]

And I can tell you from having been on the ground here that all of the Russian TV channels broke into that video when it came through of Vladimir Putin visiting. What the Russians say was that outpost and getting a military briefing from his top general, Valery Gerasimov.

And you already mentioned that the Russians are saying they believe that operation is in the final stages, and that certainly is creating big waves here with the Russians saying, look, this is something that shows how committed the Russians are to winning in Ukraine and certainly also shows the Russian president, as you will, leading the charge in all of that.

It was quite interesting that so far we haven't really heard the Kremlin, as you mentioned, talk about their position towards that possible ceasefire. But we certainly do see them saying that right now, they believe on the battlefield and especially there in the Kursk region, that the momentum is on their side. And it's hard to overstate just how significant that is for the Russians -- Rahel.

SOLOMON: I mean, to that point, my understanding is that you've actually now gotten an update from the Kremlin on their response to the U.S.-Ukraine peace proposal. What are they saying?

PLEITGEN: Yeah, but the response is that they say, look, well, listen to what the Americans have to say. They really haven't said yet whether or not they're going to latch on to that ceasefire and be part of it, as the Ukrainians, of course, have already said.

You are right that we just did have a conference call with the Kremlin spokesman, Dmitry Peskov. And there he said that the Russians want to listen to what the U.S. has to say. He said last night, there was a call between the national security adviser, Mike Waltz, and a senior Kremlin aide, Yuri Ushakov, where they iterated some of the things that are in that peace proposal and some of the things that the U.S. would like to happen next. And he also said that U.S. negotiators are currently on their way here to Moscow.

Now, of course, in the last instance when that happened, that was the president's envoy for the Middle East, Steve Witkoff. And I can tell you right now that the TASS news agency of Russia is monitoring every altitude change of Steve Witkoff -- what they believe to be Steve Witkoff's plane as they think its making its way here to Russia.

It's unconfirmed, of course, at this point in time. However, the Kremlin has said that today there is a meeting between the Russian president and the Belarusian president that Vladimir Putin could then comment on the ceasefire and that there could possibly be an international call with Vladimir Putin later on today, which could obviously mean that Vladimir Putin might be speaking to U.S. President Trump.

But again, a lot of that is still up in the air. And so far, the Russians have not said how they feel about the ceasefire and whether they are willing to be a part of it at this point in time -- Rahel.

SOLOMON: Yeah. As we continue to stand by and wait to see sort of what their response will be. Fred Pleitgen in Moscow, appreciate you coming up for us. Thank you, Fred.

And still to come for us, business owners here in the U.S. say that they fear they're going to have to increase prices to cover the cost of tariffs. The latest on the U.S. economy straight ahead.

Plus, new details coming out about who may have been on the beach when a U.S. college student went missing in the Dominican Republic. We're going to have an update on the investigation when we come back.

(COMMERCIAL BREAK)

[05:22:27]

SOLOMON: Welcome back.

A majority of Americans say that they believe President Donald Trump's current economic policies will end up hurting the U.S. That's according to a new CNN poll conducted by SSRS just out this hour. Over half of those polled say that they feel Trump's actions have already made the economy worse, while just over one quarter think that the president has made it better.

And asked how they think the economy is right now, nearly three quarters of Americans describe current conditions as poor. Keep in mind that some of this likely reflects a partisan shift that happens anytime the presidency moves from one party to another.

All the same, owners of big and small businesses are telling us how they're feeling uneasy about the economy, as the president rolls out some -- some radical changes. That includes worries about tariffs on imports and how they and their customers will be affected.

(BEGIN VIDEO CLIP)

SHANE CUSICK, OWNER, PELLO BIKES: Yeah, we have to increase the prices to cover that -- that extra cost, which -- which means unfortunately, you know, the cost of the bikes goes up and our, our customers are paying more for the bikes.

UNIDENTIFIED MALE: All of our cans either come from Canada or the aluminum being used to make the cans come from Canada. So we're going to get hit with it one way or another. We're looking at probably, you know, at 25 percent, a 1 to 2 cent per can increase. If we go to 50 percent, it's going to double those numbers. And, you know, there's only so much we can eat before we have to, you know, push that off to the consumer on the shelf.

MARY KEITH, CO-OWNER, GLOBAL PRODUCT SOURCING: We're certainly concerned about rising prices because we have to pass them along to our customers.

(END VIDEO CLIP)

SOLOMON: The president meantime insisting that it will all work out. Take a listen.

(BEGIN VIDEO CLIP)

TRUMP: Financially, we'll be stronger than ever before. I think the markets are going to soar when they see what's happening.

(END VIDEO CLIP)

SOLOMON: All right, let's break all of this down with CNN global economic analyst Rana Foroohar. She is also the associate editor at the financial times.

Rana, we appreciate you waking up to be here early with us. I want to add to something we just heard from some of those business leaders there, business owners. We played a clip a little earlier from a man named Doug Fuller. He's an Iowa soybean farmer, Rana. And what he said is that no one wins during a trade war. No one wins after a trade war.

You've been doing this a long time. Is he right, or is the president right that this is just some short term disturbances, but stick with me because it will get better in the long term?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Well, I don't think it's going to be short term disturbances. You know, the presidents been using that word a lot. We're in for a little disturbance. He used it during the State of the Union. What he is trying to do, whether you agree with it or not, is fundamentally change the global trading system.

[05:25:02]

And that's not a short term thing. You know, we -- we have had this system for half a century, really. And you know, the president is essentially trying to change the way the entire structure works. You know, I'm not 100 percent adverse to some highly strategic targeted tariffs, particularly on countries like China, that have certain mercantilist practices that have made it difficult for U.S. labor and U.S. companies to compete. But the idea that you're putting unilateral tariffs or threatening

them, at least on adversaries and allies like it, just makes it really -- first of all, it makes it really, really hard for the U.S. because you cannot go it alone. You've got to have some support from allies. If you are going to try and take on China, try and take on the system as it has worked for 50 years.

And then in terms of what its going to do to the rest of the economy, markets are not going to soar. You know, markets don't like tariffs. The U.S. economy has been based for a long time on the idea that as long as prices are going down and share prices are going up, everything is fine.

The president is saying, no, we're going to change the way everything works. We're going to try and protect domestic industry. And by the way, I don't think he's going about it the right way. And we're not going to worry about share price going up, and we're not going to worry about consumer prices going down.

So it's really a fundamental shift in the way things happen. That's not a short -- that's not a short term pain.

SOLOMON: Yeah. And share prices have been going down. But one bright spot this week was that apparently some prices are also going down. The CPI report showed that overall prices did cool more than economists had expected.

But, Rana, you know, in a few hours were going to get the producer price report, the PPI, essentially how the producer of goods and services, what inflation they may be experiencing.

What are you watching there? What are you expecting there?

FOROOHAR: Well, let me just say for starters, just the fact that inflation is going down doesn't necessarily say good things about the overall economy. A lot of people feel -- I think this is probably true, is that we're headed for a slowdown. We're headed for an economic slowdown. That may be the reason that prices are starting to cool a little bit now.

On the one hand, that's -- that's good. If it takes off some pressure from what you buy in the grocery store, the price of fuel, food, things like that. But if it indicates that companies are pulling back, which is what I'm hearing, that investment is slowing down. That means job growth may also slow down. So it's kind of a dual edged sword.

I also think, you know, some people are saying, well, okay, inflation is slowing down. That means the Fed might be able to cut rates. I don't think the Fed is going to be interested in cutting rates while there's still the threat of a tariff war, because that could change things very quickly. That could change the inflationary picture.

SOLOMON: Yeah, I mean, Rana, for -- for people who are watching, they're hearing these headlines. They're seeing the stock market. They're hearing that some of these banks are raising their recession forecasts. They're hearing from some of these companies during the earnings reports that they're issuing slower -- they're issuing warnings on slower demand.

When you're looking at the data, I think it's safe to say that we are starting to see signs of cracking. I think the question that I have is, are we beginning to see what could be a short blip, which some have suggested this will be? Or are we beginning to see what could be a more sustained downturn? Because, as you know, Rana, no two recessions are alike.

FOROOHAR: That's a very good point. I'm betting more on the latter, to be honest, I think it is going to be a slowdown that's going to last for a while.

Let's just step back. I mean, we're talking a lot about the Trump policies and all the uncertainty that's been created, which is definitely a headwind to the economy. But even if all things were equal, even if Kamala Harris was in office today, I would expect that we would be headed for a slowdown because we haven't had one in a long time.

And, you know, recession recovery cycles come and go. That's natural. If you discount the COVID blip, which was kind of a quick downturn and upturn, just pandemic related, we're six years overdue for a recession.

So I guess that goes back to the first set of questions. This is really not the time to be playing fast and loose with the economy.

SOLOMON: Yeah, certainly not coming off a period when we've had extraordinary price increases. We've had an extraordinary amount of interest rate increases. It has sort of felt pretty delicate. And maybe perhaps we're entering an even more delicate phase for the economy.

Rana Foroohar, always a pleasure to have your insights. Thank you.

FOROOHAR: Thank you.

SOLOMON: All right. And straight ahead, as the Trump administration threatens schools over diversity, equity and inclusion programs, one Pulitzer Prize winning journalist is taking matters into her own hands in her hometown. We'll bring her to you next.

And a SpaceX mission last night to the International Space Station had to be pushed back a few days. Just ahead, what the delay means for the two astronauts who have already waited months to come back down to Earth.

We'll be right back.