Return to Transcripts main page

Inside Politics

Trump Vows New Tariffs On China, Mexico, Canada On Day One; Experts Worry Tariff Exception Process Leads To Corruption; Blinken: Israel-Lebanon Ceasefire Agreement In "Final Stages"; Beirut Suburbs Hit Today By Multiple Israeli Airstrikes; Source: Top Trump Aide Facing Shakedown Allegations; Epshteyn: "These Fake Claims Are False And Defamatory". Aired 12-12:30p ET

Aired November 26, 2024 - 12:00   ET

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

[12:00:00]

(COMMERCIAL BREAK)

MANU RAJU, CNN ANCHOR, INSIDE POLITICS: Today on Inside Politics, the Trump trade war begins. President-elect says he'll slap massive tariffs on America's three closest trading partners, the first day he's in office. But will he follow through? If he does, will it get in the way of his promise to fight inflation?

Plus, we could be on the verge of a ceasefire deal between Israel and Hezbollah. Prime Minister Benjamin Netanyahu, the cabinet is expected to vote on it today. We'll go live to Jerusalem for this latest on this critical meeting.

And a potential pay to play scheme. One of Trump's most trusted advisers is accused of asking the eventual pick for treasury secretary for money to talk him up to the box.

I'm Manu Raju in for Dana Bash. Let's go behind the headlines at Inside Politics.

First up, the days of federal policy through social media are back. With just two posts on Truth Social, Donald Trump ignited fears of a massive trade war. First, he announced that on day one of the second administration, he'll charge Mexico and Canada a 25 percent tax for all products coming into the United States.

Trump says it's to force action on illegal immigration, crime and drugs. He followed that up with another post, promising to raise existing tariffs on China another 10 percent because of its role in the fentanyl trade.

So, what does it mean for you? Higher prices for anything imported from those countries, which are by far America's largest trading partners, everything from cars and smartphones to avocados and paper goods. But none of this should come as a surprise to people who actually listened to Trump campaign.

(BEGIN VIDEO CLIP) DONALD TRUMP (R), FORMER U.S. PRESIDENT AND CURRENT PRESIDENTIAL- ELECT: And if they don't agree with us, we'll put a tariff of approximately 100 to 200 percent on each car, and they will be unsolvable in the United States.

If I was Mr. Tariff, I would say, please get me a PR agent. I have to straighten out. It's one of the most beautiful words in the whole world, the word tariff, it's more beautiful than love. I'm going to immediately impose a 25 percent tariff on everything they send in to the United States of America.

(END VIDEO CLIP)

RAJU: All right, I'm surrounded by an excellent group of reporters to break this all down today, Vivian Salama of The Wall Street Journal, Anna Palmer of Punchbowl News, and Zolan Kanno-Youngs of The New York Times. Nice to see you guys. Thanks all for being here. Appreciate it.

All right, let's talk about what this means. You know that, remember, we Trump. He did impose some tariffs back in his first term, but this is different what he's talking about now. Back then, this affected about 14 percent of the imports. Back in 2018 that amount about $380 billion total.

Now, to compare that to what he's talking about right now. That is 43 percent of 2023 imports. We're talking about for Mexico, for Canada and for China, the three biggest U.S. trading partners. So, a significant jump, if you were to carry through with those three countries. And if he's really been talking on the campaign trail, doing it for all imports as well, a 100 percent.

So, Vivian, is this a negotiating tactic and or is this -- is he actually going to follow through with this?

VIVIAN SALAMA, NATIONAL POLITICS REPORTER, THE WALL STREET JOURNAL: Both, probably. I mean, it's definitely being used as a negotiating tactic, a threat. He's still not the president. So, at this point he's trying to hang it over them. But we did see that he was very keen in using tariffs in the first administration. And flashback, almost four years ago, it was a controversial move even within his own administration.

He had hand-picked administration officials who used to battle with each other in the Oval Office over these issues, because even his treasury secretary and others were not very keen on imposing tariffs. They have inflationary pressures, which right now in 2024, 2025 the country can't really handle any further inflationary pressures, but also it hits hard on a number of key industries in our country, farming, manufacturing, to name just a few.

And so, you know, these very people who a lot of them came out in support of Trump, are the ones who could likely be the ones to be subjected most harshly to tariffs if this were to continue, but he still sees it as the key and preferable punitive measure against countries that do not do what he wants to do. And obviously, that hasn't changed over the years. [12:05:00]

RAJU: And you know, as I mentioned, this was unlimited -- more limited tariffs that he did in this first term than what he's talking about right now. Back then, the impact of the Trump tariff, some of which Biden continued in his administration. The impact that has happened, according to the Tax Foundation, is that it hurt impacted household tax increase by about $625 per year.

Anna, I remember when Republicans were opposed to raising taxes, but there really has not been much outcry from the GOP about these tariffs.

ANNA PALMER, FOUNDER & CEO, PUNCHBOWL NEWS: Yeah. It feels a little bit like what's up is down these days when it comes to the Republican Party, particularly when it comes to financial and fiscal issues. Republicans have not -- lawmakers in particular are pushing back saying, you know, this is going to be a problem. They basically are in lockstep with the president on this.

I think the big question then, where that could change is? Does this actually have economic impact? Does this have impact when it comes to the tax bill that they're going to be trying to pass next year? There's massive implications here.

I do think the one issue where that both Republicans and Democrats are together on is anti-China. And so, that is one where you see a country that could have the more punitive tariffs put in place. And I think you might have some Democrats as well as Republicans, say that's not that bad of a thing.

RAJU: Yeah. I mean, obviously, as I mentioned, these are the three largest trading partners, Mexico and Canada at the very top. But what do Americans want in terms of -- what were their top priorities for Trump? This according to news, CBS News / YouGov poll that came out, their highest priority is lower prices. 79 percent of Americans want lower prices. Just 26 percent say put tariffs on imports. So, his strategy here can undercut what voters want him to do.

ZOLAN KANNO-YOUNGS, WHITE HOUSE CORRESPONDENT, THE NEW YORK TIMES & CNN POLITICAL ANALYST: Sure. But this, you know, threatening tariffs, particularly against Mexico and other Central American countries, was basically the central pillar of his approach, diplomatic approach, approach to migration when it came to this region.

So yes, while those economic concerns are true, you know, the president-elect -- he does gravitate towards immigration and migration as his primary issue. This is one of his basically go to steps when it comes to his approach for these nations.

The other thing that's not being talked about as much as sort of Mexico's response to this as well. You know, in order to do many of those ambitious plans that the president has been -- that the president-elect has been talking about, sweeping border restrictions, mass deportations. You also need somebody to take in those people that you're reporting that being the Mexican government. They've been basically a collaborator, and one of the prime reasons that the Biden administration has been able to drive down border crossings recently. And today, the Mexican government also issued a response to the president-elect that --

RAJU: Just before you jump in, just to read that response from Claudia Sheinbaum, the Mexican president. She said, President Trump, neither threats nor tariffs will solve the issue of migration or drug consumption. United States. Cooperation and shared understanding are required to face these important challenges. Imposing one tariff would mean another comes in response, continuing like this until we put shared companies at risk. A pretty stark warning.

KANNO-YOUNGS: It is a stark warning. And I think that statement comes from a sentiment that I would hear often in Mexico as well while reporting there. And that's that there are officials in the Mexican government that also feel as if they have some leverage, you know, with this new administration.

We often talk about this as, you know, the president-elect Trump, you know, issues threat to Mexico and has these immigration demands. Well, Mexico also knows that. You know, the U.S. needs Mexico in terms of many of these plans when it comes to the border. And that was one of the more sorts of direct statements I've heard. But it was something that I think you often hear privately that's now made its way to the public when it comes.

SALAMA: Manu, can I say just a quick word on China?

RAJU: Sure.

SALAMA: China is a little bit different than Mexico and Canada. Obviously, those two are the biggest trading partners are close allies. But with China, Trump really has used tariffs as a means, he talks about fentanyl quite a bit, and kind of uses that as the punitive measure, but really, he's trying to force them into a position where he can get them to negotiate better trade deals.

He says that they take advantage of the U.S., and so that's been his tactic all along. It was very controversial under the first Trump administration, but the Biden administration, when they came in, they did a review and decided not to reverse a lot of those tariffs. And so actually, both parties have come quite a long way since the first Trump administration.

When it comes to China in particular, it is much more controversial for countries like Mexico and Canada, but with China, there's a little bit more tolerance from both parties for actions like this, and I think you're going to see that even moving forward.

RAJU: One thing though, has been -- you know, Trump has had a shifting ideology on a lot of issues over the years. Shall we say, to put it mildly, on some issues, in particular, tariffs has been different. This is Trump from 24 years ago.

(BEGIN VIDEO CLIP) TRUMP: There are a lot of things I do if I were elected. But one thing I do definitely is stop other countries from ripping off he United States. They are ripping us like we've never been ripped before. If you look at Japan, if you look at China, where we lose $100 billion a year with China. And they do nothing to help us with potentially our biggest problem of all, and that's going to be North Korea. So, I would start right at that point.

(END VIDEO CLIP)

[12:10:00]

RAJU: And at the time, Trump was actually flirting with the presidential run, possibly alongside Minnesota Governor Jesse Ventura on the Reform Party ticket. A lot has changed, but not Trump on tariffs.

PALMER: Well, you have to think too. He probably is a businessman and getting merchandise from China, has some experience with it. Clearly felt like he wasn't getting the deal that he deserved. And this is one of those areas where he does feel like he, you know, has a clear through line. I mean, that's very rarely do you see Trump 20 years ago kind of saying the exact same thing as he is saying today.

RAJU: Exactly. And he said it obviously on the campaign trail. But I want to actually turn right now to CNN's Matt Egan, who has some new reporting on how the Trump administration may will see pick and choose, which companies pay for tariffs. Experts worry it's a process that opens up the door to potentially corrupt decision making. So Matt, what are you learning?

MATT EGAN, CNN REPORTER: Well, Manu, there is a system in place for U.S. companies trying to avoid paying tariffs, especially on China. But businesses and researchers tell CNN that that system is broken. So, we're talking about tariff exclusions. And U.S. companies can apply for what amounts to a hall pass to avoid paying those tariffs on China. If they can show that it would cause severe economic harm to them or that they can't get the products elsewhere.

Now, during the first Trump administration, these exclusions were very hard to get between 2018 and 2020, only about one in seven companies that applied with the U.S. Trade Representative were able to get these exclusions. And lawmakers and companies they feared that the USTR was able to kind of pick winners and losers by deciding who got these exclusions and who didn't.

And business owners feared that there was a lack of transparency with this process that opened it up to potentially allowing officials to play political favoritism. And there is some academic research that supports that. Of some peer reviewed research finds that firms whose executives backed Republicans, they were able to get exclusions one in five amount of times, so one in five chance.

But compare that to firms whose executives backed Democrats, just a one in 10 chance. And to be clear, getting this tariff exclusion was a very big deal. Manu, for some firms, this was a do or die situation. RAJU: Is there a sense that this time around, Matt, that this process may be any different?

EGAN: Yeah, Manu. That's one of the many things we don't know at this point. We don't know whether or not the Trump administration is even going to have an exclusion system this time around. I did reach out to the transition, and they said that Trump will protect American workers, but they did not answer any questions about whether or not there's going to be any reforms to the exclusion system, or if there's going to be the ability to apply for exclusions in the first place.

But the researchers, you know, they did not allege any wrongdoing by companies or by U.S. officials. But they did say that this tariff exclusion system amounts to a very effective spoil system, allowing the administration of the day to reward its political friends and punish its enemies.

And one business executive told me that the process is potentially corrupt because it allows winners and losers to emerge from a process that is not transparent. And again, there's a lot at stake here. Companies are already trying to navigate and game out how they're going to avoid these new tariffs.

I spoke to a business owner from Los Angeles who in 2018 applied for a tariff exclusion on imports of air fryers from China, and like many other people that exclusion was denied. And he said his company was on the up and up, and this totally halted their growth, dead in their tracks.

And this business owner, he rejected the argument from Trump that China is the one that pays these tariffs. He told me, and I'm going to abbreviate in case my kids are watching here. He said, bro, that is BS. I'm getting the bills. And look, Manu, those bills are going to go even higher if Trump follows through on his promise to increase tariffs on China as well as impose tariffs on Mexico and Canada as well.

RAJU: Yeah. I mean, one thing is clear. This is going to opening -- open up a huge lobbying campaign behind the scenes here in Washington for those exclusions. Matt Egan, thank you for that traffic reporting. And coming up for us, we're following a potential ceasefire deal between Israel and Hezbollah. CNN is live in Jerusalem with the breaking details. That's next.

(COMMERCIAL BREAK)

[12:15:00]

(COMMERCIAL BREAK)

RAJU: This just in the CNN, Secretary of State Antony Blinken, says that a ceasefire agreement between Israel and the Lebanese militant group Hezbollah is in the quote, final stages. Now, the Israeli cabinet is meeting right now to vote on the deal, which would include a 60-day pause in fighting.

CNN international diplomatic editor Nic Robertson is in Jerusalem. So, Nic, what are you hearing on the ground?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah. I don't think you can really underestimate the importance of this vote or how heavily it's being scrutinized, particularly in Beirut, where there really seems to be sort of jitters, waiting to make sure that the cabinet has the vote.

So, what has been happening through the day here in Israel, the prime minister, a head of this key vote, met with the parties that make up his coalition, trying to get them all in line. We know there's some right-wing members there that are holdouts that don't want to ceasefire. Right now, that think that Hezbollah weep, that the idea should continue to press ahead in the fight.

[12:20:00]

But it's his Likud party, whom the prime minister met with just before going into this cabinet session. Six members in that party. His office -- the prime minister's office, says all six members are behind him. It's an 11-member cabinet vote. It's a simple majority. So, the numbers there show that the prime minister has the vote behind him, and there are a few others in the cabinet who will vote for him too.

So, it does seem that this vote is going to go ahead. The country is waiting for the prime minister to speak in a little time could slip. But in Beirut today, the IDF has been absolutely pounding it more than 180 targets. They say they've hit across Lebanon at times there were multiple, multiple strikes. The IDF saying that in the space of 120 seconds they had 20 different strikes. That's a very high number even by the IDF standards.

And there have been targets hit in the center of Beirut tonight that have not been hit before, areas that have been off limits. So even though we seem to be getting close to a ceasefire, the IDF has been going after Hezbollah targets right down to the wire, Manu.

RAJU: Yeah. So, that's a question I have, is that this is make it harder to reach this ceasefire deal, given that they are pounding Beirut today. And the Israeli government even issuing a rare evacuation order for part of Lebanese city. So, is that -- will that make it harder to get the ceasefire deal?

ROBERTSON: You know, I think it's almost part of the political calculus here, that down to the wire. Both sides will try to show that they've still got strength, show that they're not defeated, and try to get any targets that they can. Just last week, Hezbollah said, when you hit Beirut, we will hit Tel Aviv.

So, I think, you know, people in Tel Aviv will be wondering, if, before the ceasefire becomes a thing, will Hezbollah try to hit Tel Aviv? We know our colleague, Jeremy Diamond, is right up in the north close the border. The town he's in has had multiple, multiple sirens and intercepts of Hezbollah missiles this evening.

So, a real uptick there as well. I don't think it's going to derail the process at the moment, unless something absolutely untoward happens. I think for everyone here, this part of the world, is just built into the calculus of what it takes to get to that moment of saying, it's all over.

RAJU: Yeah. Big day in Jerusalem, in Israel and for the region and the world. Nic Robertson from Jerusalem, thank you for that report. And coming up next, a Trump world insider is accused of selling his influence with the president elect to job seekers hoping for a big appointment.

(COMMERCIAL BREAK)

[12:25:00]

(COMMERCIAL BREAK)

RAJU: Long time, Trump loyalist and senior adviser is being accused of shaking down people, hoping for top jobs in the new Trump administration. Multiple sources have confirmed the internal investigation into Boris Epshteyn. Epshteyn was initially brought into the Trump orbit by his college classmate Eric Trump, who responded to the allegations last night.

(BEGIN VIDEO CLIP)

ERIC TRUMP, PRESIDENT-ELECT DONALD TRUMP'S SON: I've known Boris for years, and I've never known him to be anything but a good human being. So, I'd said, I will tell you my father has been incredibly clear. You do not, you do not do that and under any circumstance, and believe me, there will be repercussions if somebody was.

So, I've never seen that side of him. I you know, I've known him for a very long time, and you know, I certainly hope the reporting is false, and I can also tell you if it's true, you know, the person will probably no longer be around.

(END VIDEO CLIP)

RAJU: All right. CNN's Sara Murray has been reporting on the story. So, Sara, what specifically has Boris Epshteyn been accused of? And do you expect him to continue to hold on to this job?

SARA MURRAY, CNN POLITICAL CORRESPONDENT: Well, these are great questions, Manu. And look, he is someone who has been a longtime loyal adviser to Donald Trump, but also a very controversial one. And so, allegations came to Susie Wiles, who is the incoming chief of staff, that there were concerns that Boris Epshteyn was essentially, you know, charging people for his influence over Donald Trump and others.

And so, Trump attorneys looked into this, including into claims that Epshteyn tried to charge Scott Bessent tens of thousands of dollars to promote Bessent's name with Trump, as well as around Mar-a-Lago and of course, Bessent eventually became Trump's pick for treasury secretary. But Bessent refused to pay, and this came to a head between these two men last week at Mar-a-Lago. Bessent and Epshteyn had a heated confrontation over this issue. Now look, as attorneys were looking into these allegations, what they found they felt was so problematic that their initial recommendation was that Boris Epshteyn should be removed from Donald Trump's proximity. Certainly, shouldn't be sitting in on all of these important transition meetings, and that he should not be employed by any Trump entities going forward, Manu.

RAJU: So, as Epshteyn responded, Sara?

MURRAY: He did respond. He's basically denying everything. He said in a statement, I am honored to work for President Trump and with his team. These fake claims are false and defamatory and will not distract us from making America great again.

And a transition spokesperson essentially said, you know, we did the review. No big deal. It's completed. We're all moving ahead together as a team, but there is still a lot of discussion going around in Donald Trump's various circles about what the fate may ultimately be for Boris Epshteyn.

RAJU: All right, great reporting. Sara Murray, thank you for that. My panel is back in the room. The Trump world is back. I mean, this has really been the story. A lot of ways of what Trump's first term was that there are advisers, working behind the scenes, and there are back, there's, you know, knife fighting, metaphorical knife fighting.

[12:30:00]