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Isa Soares Tonight
Stock Markets Tumble Across The Globe For The Second Straight Day On The Heels Of Donald Trump's Tariff Shock; Rubio Pushes Back On Economic Concerns As Trump Tariffs Impact Stock Market; South Korean Court Upholds President Yoon's Impeachment Over Martial Law Order; U.S. Stocks Tumble As China Slaps U.S. With 35 Percent Tariffs; Trump Fires National Security Agency Director And Deputy Director; Pentagon Watchdog To Review Hegseth's Use Of Messaging App; Judge Hears Case Of Man Mistakenly Deported To El Salvador; Central U.S. On Alert For Generational Flooding; U.K. Police Charge Comedian Russell Brand With Rape; 3D-Printed Copies Make Up New Exhibition In Denmark. Aired 2-3p ET
Aired April 04, 2025 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[14:00:00]
ERICA HILL, HOST, ISA SOARES TONIGHT: Welcome to the show, everyone, I'm Erica Hill in for Isa Soares. Tonight, stock markets tumble across the
globe for the second straight day on the heels of Donald Trump's tariff shock. U.S. President's trade war overshadowing discussions in Brussels
where America's top diplomat met with his NATO counterparts.
And South Korea's highest court removes the country's embattled President from office, ending months of political uncertainty. At this hour,
worldwide fallout continues after President Trump's tariff set off what is being described as a global trade war. This, as a number of experts fear a
widespread recession is also on the way.
China striking back, imposing 34 percent reciprocal tariffs on imported U.S. goods, which will go into effect next Thursday. Well, that helped to
send the markets tumbling yet again. Huge losses in Europe and Asia, and as you can see, more losses today on the day for U.S. stocks, the Dow Jones
Industrials, they're down 3.7 percent right now.
Before playing golf near his Mar-a-Lago resort today, President Trump posted this message saying, this is quote, "for investors", saying, "this
is a great time to get rich, richer than ever before". Trying to encourage businesses to invest in the U.S. But a warning from the U.S. Federal
Reserve Chair Jerome Powell.
He says inflation is likely to rise because of the President's new policies, and could remain high for some time because of these new tariffs.
Meeting with NATO Foreign Ministers in Brussels, U.S. Secretary of State Marco Rubio said investors shouldn't panic.
(BEGIN VIDEO CLIP)
MARCO RUBIO, SECRETARY OF STATE, UNITED STATES: I don't think it's fair to say economies are crashing. Markets are crashing because markets are based
on the stock value of companies who today are embedded in modes of production that are bad for the United States.
(END VIDEO CLIP)
HILL: Anna Stewart joining me now from London. Yet another rough day. We hear the Secretary of State there saying, look, yes, the markets are rough,
but it's not the wholesale economies. But there is some concern that very soon, we could see a larger impact on economies.
ANNA STEWART, CNN CORRESPONDENT: Of course. And I've seen some notes from analysts and economists today saying that what we're looking at here is
markets essentially pricing in a recession, both in the U.S., but also potentially, a global recession. We are seeing trillions of dollars being
wiped off stock markets.
Yes, there is a difference between Wall Street and main street, but the two are very much linked. At this stage, people are looking at a huge slowdown
in global trade. We have seen such steep losses across markets all over the world, in Asia, in Europe, I just saw the European market close with the
FTSE MIB in Italy down more than 6 percent.
The territory, I think, Erica, where we say stock markets actually tanking in parts of Europe at this stage, led by banks because of all these
recession fears. And this is also, of course, what we're seeing in the United States, with some of the biggest losses being those companies like
Apple, like Nvidia with exposure to China, because guess what? China retaliated.
And the question is, of course, next week, what are we going to see? What level of retaliation? And are we just going to see even steeper losses and
more and more warnings about recessions? Where does it end?
HILL: That is the big question, of course, where does it end and how anyone can brace for it. What more are we hearing from businesses? I mean, you
touched on a little bit of those concerns, right? Especially with the announcement from China earlier today. But the continued uncertainty is
really what comes into play here with Donald Trump.
STEWART: I mean, what we're hearing from businesses is they want to see retaliation, particularly in Europe. There have been a lot of unions that
are leading some of the big sectors that want to see Europe retaliate with the EU, of course, the U.S. being its biggest partner in terms of trade. It
is considering what to do at a fairly slow pace because it represents 27- member states.
We're expecting two tranches of retaliation next week, but that's actually, if you can remember back, retaliation for the steel and aluminum tariffs
from mid-March. They still haven't really come to much of a decision on what to do about the auto tariffs from the end of March, let alone what to
do with this latest tranche of 20 percent tariffs on all products.
And it doesn't end there. Let's not forget, the President has also teased ahead to tariffs on other sectors like pharmaceuticals, like
semiconductors, so, we're looking at a huge tranche of tariffs still to come and a lot of retaliation from the EU, from places all around the
world.
HILL: Yes, absolutely and I appreciate it, thank you. Let's get a closer look now of the view from China again with those retaliatory tariffs being
announced today, some 34 percent. Marc Stewart has more from Beijing.
[14:05:00]
(BEGIN VIDEOTAPE)
MARC STEWART, CNN CORRESPONDENT (on camera): If this is what a trade war looks like, this is a very big hit from China. Two important points to
make, number one, even though these tariffs are broad and across the board, this will hurt American farmers and the agriculture industry. China imports
a lot of soybeans from the U.S.
It's often been a top consumer. These additional tariffs will raise the cost significantly. In addition, we're seeing restrictions on American
access to rare minerals, which are often used in household electronics. And the other point to make in all of this is the timing. This is coming late
on a Friday night in Beijing. The start of an important holiday weekend.
For Beijing to do it at this time really says a lot. Will this latest move by China draw Xi Jinping and President Trump to the negotiating table? It's
not very clear. But as one analyst brought up the point yesterday, the question is who will fold first? We're just going to have to see. Marc
Stewart, CNN, Beijing.
(END VIDEOTAPE)
HILL: Also joining me now, Paul Donovan, Chief Global Economist at UBS Wealth Management. Paul, it's good to have you with us. And we look at
where things stand. Let's pick up on China where we just left off with Marc. Donald Trump in reaction said China, quote "played it wrong. They
panicked when reacting to the announcement of that 34 percent reciprocal tariff." Did China panic or is this more about China perhaps calling Donald
Trump's bluff?
PAUL DONOVAN, CHIEF GLOBAL ECONOMIST, UBS WEALTH MANAGEMENT: I think it is probably more the latter. This is a deliberate show of strength by the
authorities in Beijing, and we've got to remember from the global trade perspective, we do not have a global trade war. We have the U.S. versus the
rest of the world.
So, from China's perspective, yes, the United States is a very important market. It isn't the only market. It's not the only country they do
business with. And so, if you are going to be aggressive against the United States, that does still leave trade with the rest of the world, which is
carrying on, on normal, relatively civilized terms.
HILL: And to that point, this does potentially open up a very large opportunity for China.
DONOVAN: Well, I think certainly it shifts the way in which the trading system is thought about. It was up until fairly recently, very much sort of
Europe and the U.K. and the United States versus China. That was something that was, you know, very much being characterized by the nature of trade,
and there may be some re-adjustments from this as we look ahead.
At the same time, we have to recognize Europe in particular, is going to be very sensitive to risks of dumping by China. You know, China says, well, we
can't sell in the states, so let's pile it all into Europe at a low price. Europe doesn't want to see unfair competition in that sense. So, there is
going to be a certain amount of wariness.
But essentially, we're not seeing any of the signs that we had in 1930 where, you know, everyone's putting tariffs on everybody else. This is a
U.S. versus the world situation.
HILL: Right, if the U.S. is going to create it -- when we look at the reaction from Europe, you know, as my colleague Anna Stewart was just
noting, you're basically figuring out the best approach here. I thought the comments from France's Finance Minister were interesting, noting that the
target would be individual firms rather than whole sectors, because there is a real consideration for the consumer in Europe to minimize the pain in
that respect. Is that ultimately going to be, in your view, an effective pushback from the bloc?
DONOVAN: I think it certainly can be quite effective, because you know, we've already seen, for example, President Trump getting very animated over
Europe, applying taxes on, you know, Bourbon Whiskey from the United States. And of course, that's an easy one to do because you can apply a
heavy tax, you know, there are plenty of other spirits that Europeans can and do drink, including, of course, proper Scotch Whiskey.
So, you know, there's a big attack there which has provoked a response and also, of course, provoked a political response from places like Kentucky,
which are really feeling that pain. So, yes, I think that targeted attacks can work, but it is broader. And we heard from President Macron of France,
you know, advise that European companies should not be investing in the United States.
Frankly, I don't think they need to be told that at this particular juncture. But that sort of thing, the capital flow side we shouldn't
ignore. It's not just about trading goods. It's also about investment flows as we look ahead.
HILL: Absolutely. When we look at what is coming down the pike, there has been so much discussion over the last 24, 36 hours about a potential
recession.
[14:10:00]
JP Morgan even upping the chances to 60 percent. When you look at this, if nothing changes, Donald Trump putting out there on social media that these
policies will never change, although he did seem to back-track a little bit and leave the door open just a couple of hours later. How quickly do you
expect inflation to begin to rise? How quickly could we see ourselves landing in recession territory?
DONOVAN: So, the pattern that we would see, is first you get inflation, then you get the recession, because the recession is essentially a reaction
to the uncertainty, absolutely. And there's considerable uncertainty, but also a reaction to the reduced spending power. You know, consumers in the
states are not yet feeling the full force of these tax increases.
So, inflation would come first. Now, a lot of things like fresh food are not particularly affected. They come from Mexico, from Canada. You know,
those are things where you've got a very short inventory cycle. So, your tariffs would typically feed through very quickly, that's not going to be
happening.
But within sort of 6 to 8 weeks, we'll start to see some price increases. We may already have had a few as companies have anticipated tariffs. And
then we've got to look for the second round effects or American companies raising prices. Are we seeing retailers expanding profit margin again under
the cover of tariffs?
Another profit-led inflation episode. So, that's what we're going to be looking for. So, by the Summer, the inflation consequences will start to be
visible. And I think if nothing changes, and that means including the tariff levels themselves, we carry on with this, the U.S. would be in
recession by the end of the year.
HILL: Paul Donovan, really appreciate your expertise and your insight. Thank you.
DONOVAN: Thank you very much.
HILL: Still ahead here tonight, the U.S. Secretary of State defending his boss in front of world leaders while also acknowledging the markets are
crashing. So, what else is happening perhaps behind the scenes? Plus, a new era in South Korea's history, now that former President Yoon has been
removed from office, the race is on to elect a new leader.
(COMMERCIAL BREAK)
HILL: The top U.S. diplomat acknowledging markets are crashing after President Trump unveiled this new slate of tariffs on almost every nation
that trades with the United States. Secretary of State, Marco Rubio, though, stopped short, noting that financial markets will eventually adjust
to the new situation and pointed out the economies are not falling.
[14:15:00]
His remarks coming at a NATO meeting in Brussels where Rubio discussed his talks with Russia to end the war in Ukraine. Alex Marquardt is there.
(BEGIN VIDEOTAPE)
ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (on camera): There was no avoiding the subject of tariffs here at NATO, even if it
wasn't part of the official conversations, it did loom large. The Canadian Foreign Minister, for example, telling me that it was difficult to focus on
these important NATO issues when there's a trade war going on.
But at the end of these two days of meetings, the Secretary of State, Marco Rubio defended the tariffs from the Trump administration. He pushed back on
questions about whether economies around the world are collapsing. He said that yes, the markets are crashing, but that they are reacting to what he
called a dramatic change.
He said that there has to be a reset in the global order of trade, and that businesses and markets would re-adjust once they got used to what he called
the new rules. There was also a lot of discussion, of course, about Ukraine here at NATO. The future of Ukraine, a lot of praise for the United States,
for the efforts that it is undertaking to try to get to a ceasefire and a peace deal between Russia and Ukraine.
And Rubio actually revealed that before coming here to Brussels, he had sat down with Kirill Dmitriev in Washington. That's the Kremlin aide, the Putin
ally who went to Washington earlier this week. And the message that Rubio said he gave to Dmitriev was that they need to see concrete steps if the
U.S. -- if the U.S. wants to be convinced that Russia does indeed want peace. Here's a little bit more of what he had to say when I asked him
about that meeting.
RUBIO: Well, we're not interested in, and I'm not accusing them of this. And I'm just telling you what we're not interested in is negotiations about
negotiations, that we're not going to continue this forever. So, none of it was threatening. I think it was more an explanation of, this is our
timeline. And at some point, it will be clear whether you want peace or you don't want peace. And that time is coming. It's pretty short.
MARQUARDT: That timeframe is just weeks, Rubio said, not months. And that's the message that he said he wanted Dmitriev to take back to Putin in
Moscow. Meanwhile, NATO allies have been telling Rubio and other U.S. officials that they believe that President Putin is stalling, that he's
playing for time, and really, that the only kind of peace deal that he would go for is one that is on his own terms. Alex Marquardt, CNN, at NATO
headquarters.
(END VIDEOTAPE)
HILL: Well, President Trump is now extending the deadline for TikTok to sell off its U.S. operations. Its owner, ByteDance, had until Saturday to
sell off that portion or to face a ban on the app in the United States. You may recall, last year, Congress passed a bipartisan ban, which was signed
into law by former President Joe Biden.
So, it required the owner, ByteDance, to sell the app's U.S. operation to continue operating here in the U.S. There are several interested buyers,
but it is not clear whether ByteDance will accept any of those offers. Joining us now with more on this development is CNN's Clare Duffy.
So, in some ways, perhaps not entirely a surprise that this would be extended if there were not an agreement on a deal. But what more do we know
about the extension and also who's interested in buying?
CLARE DUFFY, CNN BUSINESS WRITER: Yes, this is going to be really good news for TikTok's 170 million American users. TikTok getting another reprieve
here, another 75 days as Trump and his team try to work out a deal to sell off the platform to an American owner. Here's what Trump said in a Truth
Social post just a little bit ago.
He said, "my administration has been working very hard on a deal to save TikTok, and we have made tremendous progress. The deal requires more work
to ensure all necessary approvals are signed." Now, it's interesting because both Trump and Vice President Vance had been saying in recent days
that they expected to have a deal ready before this April 5th deadline.
Trump now saying that deal needs a bit more time to get finalized. But what's interesting is that even as the deadline was inching closer, we
still have not gotten any real indication from ByteDance or the Chinese government that they would be willing to sell TikTok's U.S. operations, and
that is crucial here, right?
What's more, Trump had also suggested that he could lower tariffs on Chinese imports to the United States in exchange for a TikTok sale. And
yet, we're seeing now this escalating trade war between the U.S. and China. Both sides hiking tariff rates. And so, I think the question really is
going to be when we think about TikTok's long-term future is, can Trump convince China to agree to sell off this very popular platform?
And then my other big question is, how are the members of Congress who just last year agreed on a bipartisan basis that this app represented a national
security concern, the Supreme Court unanimously upheld that concern earlier this year. How are they going to respond to yet another delay of the ban of
this app that they consider to be a national security concern? But for now, good news for TikTok users in the U.S.
HILL: Yes, exactly. The scrolling continues for 170 million Clare, appreciate it, thank you. A formal dismissal. South Korea's constitutional
court officially removing President Yoon Suk Yeol from office after finding his short-lived declaration of Martial Law back in December, was, in fact,
a violation of the constitution.
[14:20:00]
Now, an election to choose a new president must be held within 60 days. CNN's Mike Valerio is tracking these developments for us from Seoul.
(BEGIN VIDEOTAPE)
MIKE VALERIO, CNN REPORTER (on camera): We're pretty much in the center of the old city. For anybody who's ever been to Seoul, this is right in front
of Gyeongbokgung Palace, Gwanghwamun Gate, it's been here for centuries, a gathering point -- and this has been a gathering point for people who are
rallying against the now former President of South Korea, Yoon Suk Yeol.
But a lot of people are starting to leave. It's a far cry from the thousands of people who were cramming in close to the constitutional court
in all the streets and alleyways that had not been closed down by police. So, people here are having their after-lunch sort of victory celebrations.
And now, what happens next is that we have all on our phones read the throwing-in-the-towel statement, so-to-speak, of the former President Yoon
Suk Yeol, where he apologized and said a word of thanks to his supporters. Now, we did speak to an anti-Yoon demonstrator, listen to her reaction.
What she felt when the verdict came down earlier today.
KIM NA-YOUNG, ANTI-YOON PROTESTER: It's hard to describe, honestly. I'm excited, happy, but the moment the constitutional court said that he was
impeached, I started bawling. I cried for four minutes and I couldn't talk. And it was such a -- it was such a heavy feeling.
VALERIO: And this is a very visceral moment for millions of South Koreans, because this was all about martial law. This all goes back to December 3rd
of last year, when the now former President Yoon Suk Yeol to try to solve a political crisis, sent troops, members of the military to the National
Assembly a couple of kilometers away from where we're standing.
The heart of South Korean democracy in the name of -- from his point of view, resolving a logjam, resolving a political crisis. But those gathered
around us, certainly the majority of South Koreans said sending in the military is not how a democracy functions. You don't send troops to get rid
of a political logjam and solve a crisis.
So, where we go from here? Later in the evening, down one of these main avenues, this is where we're going to see a rally of anti-Yoon supporters,
those who are thrilled with today's decision, 7:00 p.m. local time by city hall. We're now headed towards elections within the next 60 days. That
brings us around to June 3rd.
The country is going to need to elect somebody who can go toe-to-toe with the Trump administration after 25 percent tariffs levied against South
Korea yesterday.
(END VIDEOTAPE)
HILL: And our thanks again to Mike Valerio in Seoul. Well, as Israel launches a major expansion of its military operation in Gaza, Donald Trump
says Benjamin Netanyahu will return to the U.S. as soon as next week. The U.S. President says he spoke with the Israeli Prime Minister on Thursday.
Here's more of what he told reporters on board Air Force One.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Gaza is a very important thing. It's been under siege for many years and it's a shame. It's a shame.
A lot of people die in Gaza. Gaza's been a place we have a lot of people die. A lot of bad things happen in Gaza. We'll see what we can do about it.
(END VIDEO CLIP)
HILL: Meantime, a senior Hamas source telling CNN, the group has rejected Israel's latest proposal for a temporary ceasefire in Gaza. That plan had
called for a 40-day pause in the fighting in exchange for the release of 11 hostages. Without a ceasefire, Israeli attacks in Gaza continued this week.
I do want to warn you, some of the images we're about to show you are graphic.
Gaza authorities say an Israeli strike on Khan Younis today has killed at least 25 people. They do believe more may be missing under the rubble of a
three-story house where some 70 people were staying. CNN has reached out to the Israeli military for more details on that strike.
We can tell you in the past 24 hours, 86 bodies and nearly 300 wounded have been brought to Gaza hospital according to numbers from the Ministry of
Health in Gaza. Still ahead here tonight, stronger-than-expected U.S. jobs numbers are doing little to calm the markets. Plus tariffs, could they make
that Cappuccino even more expensive? A live report from one of the world's largest exporters of raw coffee beans.
(COMMERCIAL BREAK)
[14:25:00]
HILL: Better-than-expected U.S. jobs numbers are doing little to calm the markets as they face massive uncertainty over tariffs and a rapidly
escalating trade war. The U.S. economy added 228,000 jobs in March. That is better than expected. The positive report, though, not having much of an
impact, again, as the other news, of course, dominates the trading day.
CNN's Vanessa Yurkevich is live at the New York Stock Exchange. So first, let's start with that jobs report a little bit better than expected. And of
course, these are the numbers for March, Vanessa.
VANESSA YURKEVICH, CNN BUSINESS & POLITICS CORRESPONDENT: Yes, so, this is backwards looking. This is before April 2nd, the day that President Trump
launched this all out trade war. But the jobs numbers really show a solid labor market right now. Those numbers came in at 228,000 jobs added, and
that was about 100,000 more than expected.
The unemployment rate ticking up just slightly to 4.1 -- 2 percent from 4.1 percent. But really, as you mentioned, it's done little to calm markets.
It's really sort of what has happened before tariff day and where investors are really looking forward to what is going to be happening with this trade
war.
What it may have done, though, is given a little breathing room to the Federal Reserve, so they don't have to make any drastic decisions at their
next meeting in May. We actually heard from the Federal Reserve Chair, Jerome Powell just a little while ago, who talked about the fact that these
tariffs that were announced by the President were much more aggressive than expected.
He does expect inflation to tick up and potentially linger for longer, and he expects the economy to slow. Listen to what he said.
(BEGIN VIDEO CLIP)
JEROME POWELL, CHAIR, U.S. FEDERAL RESERVE: Looking ahead, higher tariffs will be working their way through our economy, and are likely to raise
inflation in coming quarters. While uncertainty here remains elevated, it is now becoming clear that tariff increases will be significantly larger
than expected, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth. The size and
duration of these effects remains uncertain.
(END VIDEO CLIP)
[14:30:01]
YURKEVICH: Now, we have heard in recent hours that some countries are starting to talk with trade representatives from the United States, having
conversations about what a de-escalation would look like, but that's really not enough for investors here on Wall Street. They want to see full repeals
of these high tariffs especially on the end of the U.S. and with their biggest trading partners like China.
China just earlier today lobbed a 34 percent retaliatory tariff on U.S. goods coming into China. I asked a trader here on the floor how is today
going and he just sort of grunted. I mean, that really paints the picture. It's a frustrating day for many investors, many Americans who are looking
for a little more certainty about where this trade war is headed.
We are waiting to hear from another key trading partner, the European Union, what will they do in response to the 20 percent tariff that
President Trump announced on the European Union. But today is really the last obviously day of the trading week. And we can see markets now down.
The NASDAQ, the S&P down more than five percent there on your screen. That is not -- the those are not the markets but those are other stocks. And
then the Dow down more than -- there they go. There they are for you. Down more than four percent, really just capping off a really rough week on Wall
Street, Erica.
HILL: Yes. The Dow really nipping at the heels there almost at five percent, nipping at the heels of those declines that we're seeing. The
Nasdaq and the S&P tanking there. Vanessa, I really appreciate it. Thank you.
Well, in terms of U.S. Stocks, they have seen historically bad days but not like this since President Donald Trump announced his tariff plans. The
President for his part says it's all to be expected as the economy undergoes a transition. Chief Data Analyst Harry Enten is with me now. OK.
Harry, can you put this in perspective for us?
The Stock Market drop in the first couple of months of Donald Trump's term. Historically where does this land?
HARRY ENTEN, CNN CHIEF DATA ANALYST: I think the word historic, I'll take part of your word in there and just say it's historic and we can sort of
look at it, right? We'll take a look at the S&P 500. Look at presidents who had drops of five percent or more at the beginning of their presidency. You
could see there are only two figures on the screen right here. There's George W. Bush back in 2001. He had a drop of 18 percent.
I will note I made this slide earlier today before the market opened. It was 10 percent. But we can cross that out. We're now at, get this, a 15
percent drop including today's drop. The market's plunge ever further down under Donald Trump. It is the second worst plunge dating back since the S&P
500 was created back in 1957 for the start of a presidency.
HILL: That is something, second worst plunge, but is it just because of the tariffs?
ENTEN: I think the tariffs -- it's the tariffs, it is the uncertainty as well. I mean, that is really what drove it, right? Because we've had
obviously plunges over the last two days, Erica, but it is not just that. There was already a five percent drop before it. So, it's not just the
immediate tariffs, I think it's the long game that's kind of going on here.
HILL: Well, you will be around for the long game to tell us more as we ride this roller coaster. Harry, I appreciate it, my friend, as always. Thank
you.
ENTEN: Thank you.
HILL: Still ahead here tonight, a major shakeup in the U.S. Intelligence Community. We are live at the Pentagon. And a deportation showdown. We'll
take you to Maryland where a federal court is now hearing the case of a father who was mistakenly deported by the Trump Administration to El
Salvador.
(COMMERCIAL BREAK)
[14:36:01]
HILL: A major shakeup in the U.S. Intelligence Community with both the director and deputy director of the National Security Agency forced out.
The Trump Administration has not said why it fired General Timothy Haugh and his deputy, Wendy Noble. The general also led U.S. Cyber Command, the
military's offensive and defensive cyber unit. But it is notable that the decision came after President Trump met with far-right activists and
conspiracy theorist Laura Loomer on Wednesday.
Sources say Loomer who once claimed 9/11 was an inside job urged the president to remove several National Security Council staff arguing they
were disloyal. She also reportedly called for the purge of NSA leadership.
And the acting inspector general at the Pentagon launching review of Defense Secretary Pete Hegseth's now infamous use of Signal in a group
chat. Hegseth was notified in a letter yesterday that the investigation was being opened, other high-ranking officials as well, as they look to, of
course, that that conversation on Signal involved a number of other high- ranking officials and the journalist Jeffrey Goldberg who was added by accident by Mike Waltz, the National Security Adviser.
The review will determine whether Hegseth broke government protocol in using that app and discussing information on it. CNN National Security
Correspondent Natasha Bertrand joining us from the Pentagon. So, these two stories sort of coming together at once, Natasha, as we watch all of this
unfolding. It was remarkable to see that announcement yesterday that the Acting I.G. was looking into this Signal chat especially on the heels of
the White House saying they believed this was closed, there was nothing more to say on the matter.
NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Yes, it's really significant because this is the first kind of independent review that we
have seen come out of this Signalgate fiasco. We know that the NSC, the National Security Council said that it was conducting its own investigation
but nothing really ever came of that. And of course, the National Security Adviser who leads the NSC was part of that Signal group chat, so
essentially investigating themselves there.
This is different. This is the Department of Defense's acting inspector general, a pretty independent entity, looking into whether any classified
information was shared on the Signal app in an inappropriate way and whether records retention rules were violated as part of this use of Signal
to communicate among senior national security officials, because according to those chats that were released by the Atlantic last week, several of
those messages were set to disappear after several weeks. And normally records retention laws require that those are saved because they are
important of course historical records of senior officials deliberating about really important military decisions.
And so, this is something that the inspector general here, the Acting Inspector General is going to be looking at. And he indicated in a letter
to Secretary Hegseth that he is going to be requiring Hegseth and his aides to be turning over materials as part of this probe. The Inspector General
is also going to be interviewing people here at the Pentagon as also -- as well as at Central Command headquarters down in Tampa, Florida because this
was ultimately a U.S. Central Command operation against the Houthis in Yemen.
And essentially this is going to be an opportunity not for a kind of legal review because of course the I.G. doesn't have that kind of authority but a
review that provides some level of transparency here about what exactly transpired because while the Secretary of Defense has said that none of the
information that he shared related to this operation was classified, CNN was told last week by multiple sources that it in fact was classified. And
of course, that raises a lot of questions about whether Signal which is a non-governmental independent commercial app is the appropriate channel to
discuss that kind of very sensitive information, Erica.
HILL: Yes, absolutely. Natasha, I really appreciate it. And really quickly before I let you go. No further information on why a number of uh officials
were let go? Is this simply about that meeting with Laura Loomer?
BERTRAND: We've got no explanation from the Department of Defense which of course the NSA is a part of about why the national the national cyber
director was fired here -- National Security Agency Director was fired last night. Laura Loomer has tweeted about it repeatedly saying that it was
essentially because she recommended it and that the National Security Agency Director was simply not loyal enough to President Trump, but no
further explanation from the Pentagon on that.
[14:40:23]
HILL: That is really something. Natasha, I appreciate it as always. Thank you.
A federal judge is hearing the case of Kilmar Abrego Garcia, a Maryland father who was mistakenly deported by the Trump Administration and sent to
CECOT, that notorious mega prison in El Salvador. The Administration admits the mistake was due to an administrative error but says Abrego Garcia
actually can't be returned because now he's in Salvadoran custody. Abrego Garcia is from El Salvador originally but did have protected status inside
the United States. His supporters insist he is not a gang member.
Abrego Garcia's wife spoke at a rally just ahead of that hearing.
(BEGIN VIDEO CLIP)
JENNIFER VASQUEZ SURA, WIFE OF KILMAR ABREGO GARCIA: On March 12th, 2025 my husband Kilmar was abducted by the U.S. government. In a blink of an eye,
our three children lost their father, and I lost the love of my life.
(END VIDEO CLIP)
HILL: CNN's Priscilla Alvarez has more details now on the case.
PRISCILLA ALVAREZ, CNN CORRESPONDENT: Lawyers for the Salvador national who was mistakenly deported to El Salvador last month are requesting that the
Trump Administration return him to the United States. Now, so far in court filings, the administration has said that they can't do that because he is
now in the custody of another country, in this case, El Salvador. But they've also said in filings that "the public interest outweighs the
individual interest" when referring to retrieving him from El Salvador.
But in the courtroom, lawyers will be pushing for his return, and the Trump Administration will similarly be arguing some of what they have said in the
filing but also responding to the judge's questions about what exactly happened here after of course the administration conceded earlier in the
week that it had made "an administrative error" by returning him.
Now, his immigration attorney has also made the point that he had protected status, something that is known as withholding of removal. Meaning, that he
could not be deported to El Salvador even if he could be removed generally. That is likely to come up because, again, that was a status that was
provided by -- or granted rather by an immigration judge.
Now, his wife had made an emotional plea earlier in the day as she said that this entire saga has been a nightmare.
(BEGIN VIDEO CLIP)
SURA: If I had all the money in the world, I'll spend it all just to buy one thing, a phone call to hear Kilmar's voice again and have the
opportunity to talk to him and the kids again. Our entire family is broken by what -- in these words, "an error."
(END VIDEO CLIP)
ALVAREZ: Now, as you heard there, his wife has not been able to make contact with her husband who again is in that notorious mega prison in El
Salvador. His lawyers today trying to get the judge to rule that he be returned to the United States.
HILL: Priscilla Alvarez with an update there for us.
Well, extreme rainfall is bringing potentially once-in-a-generation flooding to central parts of the U.S., areas many of them already reeling
from tornado damage. Take a look at the scene in Nashville, Tennessee. Responders here pulling a driver from this as you can see partially
submerged car. This happened on Thursday. Derek Van Dam has more now from the CNN Weather Center.
DEREK VAN DAM, CNN METEOROLOGIST: Erica, the National Weather Service actually had warned of a once-in-a-generation type flood event, and we are
living that in real time across parts of the Midsouth. These are scenes coming out of Nashville, Tennessee. Look at the submerged vehicles and some
of this water impacting the buildings as well. That's a significant concern. And guess what? The rain is not done falling from the sky just
yet.
Look at these flood alerts that stretch from the Ohio River Valley through the Tennessee River Valley towards the southwest. We have millions of
Americans under some sort of flood threat right now and the rain continues to produce impressive rainfall totals.
This is radar estimated rainfall totals. Some of these pockets of hot pink, dark orange, and red indicating anywhere from 5 to 10, even locally higher
amounts. The official totals topping nine inches here in Lewisburg through this morning, so impressive. But what's even more impressive than that is
that there's still more to come.
Computer models really honing in on this area across the border of Missouri and Arkansas for some of the heaviest precipitation. But mind you, this
spans a much larger area. Some of the heaviest rain that's already fallen will get another additional four to six inches of rain. That includes
Western Kentucky, Western Tennessee. That's why the Weather Prediction Center has these high-risk zones outlined with that hot shading of pink.
These have come one day after another, consecutive days of this high risk.
And it's important to put this into context because they're only issued about four percent of the time, so relatively rare. But a third of flood
related fatalities occur in and around these high-risk zones and roughly 80 percent of flood-related damages occur there as well.
So, on top of flooding comes a severe weather threat moving over the same locations that have already been hit hard by tornadoes. Here's our greatest
risk of tornadoes, EF-2 or stronger. That's 111 miles per hour, especially where you see that hatched area across central Arkansas. Chance of severe
weather shifts a little to the south and east tomorrow. And then by Sunday, it impacts Georgia and Alabama. Erica?
[14:45:54]
HILL: All right, Derek, I appreciate it. Thank you.
And stay with us. Much more to come on the other side of a quick break.
(COMMERCIAL BREAK)
HILL: As the world grapples with the aftermath of President Trump's tariffs, one of the big questions is who will pay for them? CNN's Richard
Quest now to explain where consumers will likely feel the most impact.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: It is easy to think of tariffs on the big stuff, the automobiles, the dishwashers, and the like, but the
truth is most of us will feel our tariffs at places like this, the heavenly deli where you buy your food and drink every single day. Just look,
tariffs, tariffs, tariffs.
A bottle of San Pellegrino. It comes from Italy within the E.U. Now, I know this costs about five bucks here. A tariff of 20 percent from the E.U., so
you're talking about roughly a dollar or so. Who's going to pay the dollar? The importer passes it to the distributor. The wholesaler, the good lady at
the desk, is going to pass it on to me.
You then start looking at other things, licorice from Australia. Now, there's an election in Australia at the moment. Anthony Albanese is facing
the public. How is he going to explain how this $7.99 licorice is now suddenly 10 percent more expensive? What's it going to do to the sales?
You got to buy a new charger. You can never have enough chargers. Of course, heavenly sells chargers. The charger and the cable come to about 20
bucks. But these come from China and there is a 34 percent tariff on from China. 34 percent of 20 bucks, do the mathematics yourself, suddenly this
becomes more expensive.
And then you got the little stuff, the ghost pepper spicy chicken flavor from Malaysia. It costs $2.99. It's described as spicy madness. How about
how much madness once the 24 percent tariff goes on and the $2.99 goes up. As it says here, flaming spicy madness. Are they talking about the food or
the tariff?
Whichever way you look at it, everything's going up in some shape or form. And it really is just a question of who is going to eat the cost.
Richard Quest, CNN, at the Delhi in New York.
(END VIDEOTAPE)
[14:51:00]
HILL: A look at rising prices is only Richard Quest can.
One other thing that is likely to see a rise, coffee prices. They're already pretty high but they're expected to heat up even more once these
tariffs kick in. Keep in mind, the world's largest suppliers of raw coffee beans are now facing tariffs of up to 46 percent. And just as the costs in
the deli are going to get passed along, well, you could expect those costs will have to be passed along as well, importers, supermarkets, coffee
shops, consumers.
Brazil, Vietnam, and Colombia are the largest exporters of coffee in the world. CNN Contributor Stefano Pozzebon is in Bogota, Colombia with a
closer look at this. Look, they must be bracing because there is so much concern about how expensive that cup of Joe is going to be.
STEFANO POZZEBON, CNN CONTRIBUTOR: Yes, exactly, Erica. And I think Richard made a very valid point. Yesterday, I was thinking around the same lines
of, well, the focus has been mostly on car -- on car tariffs for example, and we're talking about a 25 percent import of cars. But how many times in
your lifetime you purchase a new car? Well instead, well, everybody drinks a lot of coffee. I personally am around three or four cups of espressos.
I'm Italian so that's what I drink. And if that adds up 10 percent on each single cup, well, that makes a massive difference.
We're coming to you live and I wish Erica you could be here because the aroma that is coming out of these massive warehouse, this coffee scent is
just amazing. This is where Colombia stores its coffee before exporting it to the rest of the world. It's the true gold of Colombia. And just last
year, almost five millions of these sacks were taken from this warehouse up to where you are in the United States because of course the largest
purchaser of coffee from Colombia is the United States, about 40 percent. And about 27 percent of the coffee Americans drink every year comes from
around here.
So, yes, there is a strong concern about the impact. It's just a very minimal tariffs. It's only 10 percent. It's not as big as Vietnam for
example which is 46 percent and is on the line with the rest of other coffee producers countries such as Brazil, Costa Rica, or Guatemala. But
even this can make a good and massive impact on what eventually here is the final product. This is the coffee.
Shortly these beans will be going to a deli in New York where my friend Richard Quest might be having his morning fix. Whether he will pay for it
or who will pay for that remains to be seen. Erica?
HILL: Yes, absolutely. And you're right by the way. I would love to be in the middle of all of that coffee because like you, I also love my coffee.
Stefano, I appreciate it. Thank you.
British comedian Russell Brand on a very serious note facing multiple charges tonight including rape and sexual assault. London's Metropolitan
Police say the charges are related to four separate women. The 50-year-old was the subject of a documentary program about sexual assaults in 2023.
Brand has previously maintained his innocence. Salma Abdelaziz has more.
SALMA ABDELAZIZ, CNN CORRESPONDENT: Actor and comedian Russell Brand has been charged with rape and multiple counts of assault by British Police
over a number of allegations between 1999 and 2005. Now, to remind our viewers, Russell Brand was at one point one of Britain's most high-profile
comedians and actors, of course, former husband to pop singer Katy Perry. But in recent years, he has repositioned himself as a social commentator,
at times being accused of spreading conspiracy theories on his platforms.
Now, let's look at what exactly he is charged with by British Police, and that is one count of rape, one count of indecent assault, one count of oral
rape, and two counts of sexual assault. Now, these charges relate to four separate women. And the Met says that its investigation remains open. And
detectives ask anyone who has been affected by this case or has any information to come forward and speak with the police.
Now, this investigation was launched in 2023 after Channel 4 aired a documentary where four women had accused Brand of sexual assault including
rape. Now, Russell Brand has previously denied these allegations against him and accused the British government of trying to censor him.
Salma Abdelaziz, CNN London.
HILL: Well, on a lighter note, to close out the hour here, the most comprehensive collection of Michelangelo's works in more than 150 years can
now be seen at the National Gallery of Denmark. But there is a little bit of a twist here. Many of his most famous works including the Statue of
David weren't actually moved to Denmark for the exhibit, instead they've been 3D printed.
The exhibit is called Michelangelo Imperfect. It includes 40 reproductions from the Madrid-based studio Factum Arte. The studio uses new and
traditional techniques to create copies that are visually identical to the originals. In case you're in Denmark.
Thanks so much for joining me tonight. I'm Erica Hill. Be sure to stay with CNN. We are back at the top of the hour with more news in the CNN
"NEWSROOM."
END
