Return to Transcripts main page
One World with Zain Asher
Trump's Sweeping 25 Percent Tariff On Steel, Aluminum Imports Takes Effect; EU Retaliates After Trump Imposes 25 Percent On Steel & Aluminum; Zelenskyy On Ending War: I Am Very Serious About This. Aired 11a-12p ET
Aired March 12, 2025 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
(COMMERCIAL BREAK)
ZAIN ASHER, HOST, "ONE WORLD": President Trump's tariff war goes worldwide with sweeping tariffs on all steel and aluminum imports going into effect.
One World starts right now.
Swift reaction from Canada coming in now with retaliatory tariffs on $20 billion worth of American imports. We are live at the White House and in
London for you with the very latest. Plus, the world is standing by for Russia to respond after Ukraine signs on to a 30-day ceasefire proposed by
the United States. We will take you live to Kyiv for reaction coming in from Ukrainian President Zelenskyy. And a court hearing is underway in New
York for a detained Palestinian activist. He helped lead U.S. campus protests against the Israel-Hamas war, and is now fighting a Trump
administration move to deport him.
All right. Coming to you live from New York, I'm Zain Asher. My colleague, Bianna Golodryga, is off today. You are watching One World.
Let's take a look. Before we get to tariffs, I want to show you some live pictures of the White House, where any moment now Donald Trump is expected
to greet the Prime Minister of Ireland. The U.S. President and Taoiseach, Micheal Martin, will then take part in a bilateral meeting and reception,
followed by a Friends of Ireland luncheon at the Capitol before returning to the White House later on. But, what is normally a celebratory annual
visit by the Irish leader to mark St. Patrick's Day, comes at a particularly tense time as Trump's trade war escalates. Ireland is one of
America's biggest trading partners.
Meantime, one of its two biggest trading partners is striking back. Canada just announced a series of retaliatory measures against the U.S., including
25 percent tariffs on a variety of goods. Europe was also quick to retaliate following President Trump's announcement of sweeping tariffs on
Tuesday, by slapping $28 billion worth of levies on American goods.
But, even as the markets went on another roller coaster ride on Tuesday, and as Trump tried to reassure uneasy business leaders, he defiantly
defended his policies, even threatening higher tariffs.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT, UNITED STATES OF AMERICA: Look, the higher it goes, the more likely it is they're going to build, and ultimately, the
biggest win is not the tariff. That's a big win, that's a lot of money, but the biggest win is if they move into our country and produce jobs, that's a
bigger win than the tariffs themselves.
(END VIDEO CLIP)
ASHER: Since its all-time high less than a month ago, the stock market has lost $4 trillion in market value. Here is a look at how it's doing right
now. Meantime, a new CNN polling finds Americans are not happy with Trump's handling of the economy, with a 56 percent disapproval rate, which is worse
than at any point during his first term.
CNN's Anna Stewart joins us live now from London. But first, let's go to our Alayna Treene, who we find live at the White House. So, let's talk
Canada. Canada essentially announcing reciprocal tariffs. Dominic LeBlanc, the finance minister, essentially saying they will not stand idly by.
They're announcing a $20 billion worth of reciprocal tariffs that are going to go into effect at midnight. Take us through it, Alayna.
ALAYNA TREENE, CNN WHITE HOUSE REPORTER: That's right, and Canada is really one of the trading partners that is retaliating, excuse me, that is
retaliating on the United States for these tariffs. Other countries, like Australia, for example, are deciding not to do that, but they are moving
forward with this.
One thing that is interesting, though, is that we do know that the Commerce Secretary, Howard Lutnick, who has been kind of all over the media trying
to break down some of this tariffs news, he is meeting with Dominic LeBlanc tomorrow, as well as the Ontario Premier Doug Ford, and that comes after
the President yesterday had initially threatened to put an extra 25 percent tariff on steel and aluminum from Canada coming into United States, that
would total 50 percent, but then backed away from it after Lutnick had some conversations with those in Canada. All to say, so many moving parts here,
and still so much volatility, despite really two days of some of the worst days this year for the stock market, and continuing to see that go down, as
well as watching Americans' 401(k)s and retirement funds decline as well.
Now, one thing that I found very interesting, Zain, is you played that clip of the President speaking at the Business Roundtable. One thing that I am
consistently hearing from people on this end of Pennsylvania Avenue, but especially on the other end, on Capitol Hill, and of course, with Wall
Street, is there questions and concerns over what the grand strategy here is?
[11:05:00]
What is the bigger plan on this? And this is what one person, one of the business leaders, who was in the room last night, told CNN. They said,
quote, "There was no new clarity or certainty in that meeting", essentially saying that they didn't get a lot of answers and the reassurance that they
were looking for from the President around these concerns of this bigger plan.
Now, we did also hear Lutnick this morning speaking in an interview and talking again about a recession. I want you to listen to how he phrased it.
(BEGIN VIDEO CLIP)
NANCY CORDES, CBS NEWS CHIEF WHITE HOUSE CORRESPONDENT: Will these policies be worth it if they lead to a recession, even a short-term recession?
HOWARD LUTNICK, U.S. COMMERCE SECRETARY: These policies are the most important thing America has ever had.
CORDES: So, it is worth it.
LUTNICK: It is worth it. A, I don't think -- the only reason there could possibly be a recession is because of the Biden nonsense that we had to
live with.
(END VIDEO CLIP)
TREENE: So, not sure that it instills more confidence and certainty around what has been a very uncertain time for the markets. You can expect
Democrats to clip some of that from Lutnick. But, look, I think what is clear in my conversations with those close to the President is that he has
dug in on these tariffs. He believes that the United States is being taken advantage of. He also believes that they are a good negotiating tool, and
he is not expected to or planning to pull back anytime soon, Zain.
ASHER: All right. Alayna Treene live for us there. Thank you so much.
Anna, let me go straight to you, just in terms of where we were in President Trump's first term. Obviously, the Europeans have been here
before. What are the economic ramifications in terms of a trade war between the U.S. and the EU this time around, and just walk us through what sort of
market reaction we're already getting?
ANNA STEWART, CNN CORRESPONDENT: Yeah. We have been here before. The EU retaliated in 2018 when it was hit with tariffs. It said it would this
time. And hey presto, we have a new round of tariffs, and they're bigger than they were in 2018. It starts with re-imposing all the tariffs that had
actually been suspended in 2018 and 2020. So, that includes things like jeans, Bourbon whiskey, Harley-Davidson motorbikes, and they are adding an
additional 18 billion euros worth, which will start in mid-April. We don't know the specifics yet of what that will target.
But, essentially, you have the EU here trying to match the value of tariffs on their aluminum and steel, which they export to the U.S. So, that's where
the EU is. The EU has tried to negotiate already. The EU trade commissioner was in D.C. a few weeks ago. The meeting came to very little. At the end of
it, the EU trade commissioner said, in the end, as it is said, one hand cannot clap. He felt like he was clearly the only one at the table wanting
to actually negotiate here. They will keep trying.
But, it has been interesting today to see the responses around the world. No retaliation from Australia, but some really stern words from the Prime
Minister. The UK has not retaliated yet either. And of course, the UK Prime Minister, Keir Starmer, was in the White House very recently, meeting
President Trump, and is very hopeful to strike some sort of trade deal and potentially get away from any further tariffs at this stage. But, this is
the question. If this is a negotiation, this tariff battle, if that is how they're being used by the President, what is the best strategy to respond?
Is it to retaliate? Is it to remind the President that your friends and hope that you can maybe either, at some stage, get an exemption, or at
least deter him from putting any more tariffs on you?
ASHER: It is interesting. Just talk to us a bit more about how the EU is being squeezed economically by this Trump administration. You think about
the fact that obviously Donald Trump has only been in office for a couple of months now, and already EU member states are being forced to pay more
when it comes to defense spending as a percentage of GDP in order to support the war in Ukraine. And now they're also dealing with tariffs. So,
they're being hit in both directions. What are the economic consequences of that for the EU?
STEWART: Europe is in a particularly difficult position, and we can take Germany as an example, the biggest economy in the EU, in recession now for
two years, I believe at this stage. It's facing so many challenges, some of them are from the United States, and tariffs are certainly going to make a
bad situation a lot worse, particularly if we're going to see tit for tat. We see this sort of trade war escalate, in addition, having to find
additional spending for defense, having to build up their military to support Ukraine, and all of the structural issues that the EU faces. This
is to do with regulation. This is to do with competition from China. Some of the big industries in Europe, particularly if we take autos for
instance, in Germany, are really under threat, and have been now for a few years from competition in China, for instance.
So, the EU faces many challenges. What it really didn't need was a trade war.
ASHER: You can say that again. All right. Anna Stewart live for us there. Thank you so much.
All right. The ball is in Russia's court. That is the message from Washington at this hour, as it says it's preparing to present a 30-day
Ukraine ceasefire deal to Moscow.
[11:10:00]
Ukraine has already agreed to the U.S. proposed deal, which, if Moscow agrees, would immediately halt the fighting on air, land, and sea. The
Kremlin has so far refused to comment, saying it is waiting to hear from the U.S. directly.
Speaking earlier, U.S. Secretary of State Marco Rubio suggested there could be consequences if Moscow decides to reject this proposal.
(BEGIN VIDEO CLIP)
MARCO RUBIO, U.S. SECRETARY OF STATE: We're going to bring it to them directly. We're going to say that Ukraine is prepared to stop all
battlefield activity and begin the immediate process of negotiating an enduring end of the war, and we'll see what their response is. If their
response is yes, then we know we've made real progress and there is a real chance of peace. If their response is no, it would be highly unfortunate
and it would make their intentions clear.
(END VIDEO CLIP)
ASHER: Ukraine is also warning of possible consequences for Russia if it doesn't accept the deal as well. Speaking earlier, Ukrainian President
Volodymyr Zelenskyy said he is expecting the U.S. to take, quote, "strong steps against Moscow" if the Kremlin rejects Washington's proposal. Asked
about his sometimes troubled relationship with the White House, Zelenskyy told reporters that he wants the U.S. and the world to be clear that
Ukraine wants peace and it's not playing games.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (Interpreted): We will not play with the narrative that we do not want the war to end, the narrative that
Russia has and is spreading around the world. I'm very serious about this. It is important for me to end the war. I want the President of the United
States of America to see this. I want Americans to see and feel this.
(END VIDEO CLIP)
ASHER: Senator Chris Van Hollen, a Democrat from Maryland, is a member of the Foreign Relations Committee. He joins us live now. Senator, thank you
so much for being with us. So, I think one of the things that's really interesting is that the fear leading up to this proposed deal was that the
U.S. would be negotiating directly with Russia, and then out of those negotiations with Russia, would then force Ukraine to accept a weak
ceasefire deal, a weak ceasefire proposal. But, instead, in this dramatic about-face, you have the U.S. negotiating directly with Ukraine and now
asking Russia to accept it. What do you make of that strategy?
SEN. CHRIS VAN HOLLEN (D-MD): Well, I met with President Zelenskyy when he was here in Washington last before that terrible meeting in the Oval
Office, and he has been clear from the beginning that Ukraine wants peace, but it wants a sustainable, durable peace. So, I'm glad that these steps
have been taken. We certainly hope that Russia and Putin will accept this 30-day proposal. But, of course, the broader question is ending the war in
a way that is durable and fair. And so, I welcome this development. We'll have to see what the next steps are. That's where the real questions, hard
questions, will arise.
ASHER: Yeah. This is certainly the first step on a very, very long road to lasting peace. Walk us through what you think should happen if the Kremlin
says no to this deal. What are the -- what is the right way for the U.S. to go about applying pressure to Vladimir Putin? A lot of people are saying
that sanctions are simply not going to cut at this time. Obviously, Russia has had American sanctions imposed on in the past. What sort of effect will
sanctions have again? What do you think the right strategies is in terms of getting the Kremlin to agree here?
HOLLEN: Well, you're right. We've already imposed pretty significant sanctions on Russia. Any additional sanctions that we can find should be
imposed. There is also, of course, the assets in the Russian sovereign wealth fund, billions and billions of dollars that could be essentially
seized if Russia doesn't support this effort. So, I would hope that the Trump administration would use that as a tool. There are also ongoing
issues with respect to China transferring dual-use technologies to Russia, and one way of maybe pressuring Russia would also be to raise the level of
pressure on China with respect to sanctioning those dual-use transfers. So, there are remaining a number of options available.
ASHER: And then, just in terms of, let's assume that the Kremlin does agree to this ceasefire, this proposed sort of 30-day ceasefire, it is one
question for them to actually agree to. It's another thing altogether for them to abide by. Obviously -- I mean, that's one of the things that
Zelenskyy was trying to explain to J.D. Vance during that really terrible Oval Office meeting, before things sort of blew up between them. He was
trying to explain that Vladimir Putin really cannot be trusted at all. What happens if the ceasefire is agreed to in principle, but then Vladimir Putin
does not adhere to it, that the ceasefire is violated? What happens then?
HOLLEN: Well, you're absolutely right. That's exactly the issue that President Zelenskyy raised in the Oval Office, and it was based on
experience, right, and the history of previous ceasefires that were not respected by Vladimir Putin, and this is where the harder questions come
in, including the form of security guarantees, and why it's been a mistake for the Trump administration to remove options unilaterally before actually
getting to these much tougher questions, right, when the Trump administration begins a negotiation by saying that Ukraine can't ever
become part of NATO or the United States will not provide any backup security guarantees, you give up leverage going in.
[11:15:00]
Regardless of what the final outcome will be, which is why I still think, while I welcome this 30-day pause, hope the Russians will accept it, the
much tougher questions remain to be answered, and those are questions that clearly Donald Trump and J.D. Vance did not want to confront during that
Oval Office meeting.
ASHER: And obviously, we all woke up to the breaking news that the EU was announcing reciprocal tariffs on $28 billion worth of American goods. Just
explain to us, from your perspective, how much does that complicate the relationship between the U.S. and the EU at a time when both regions really
do need to be working together to bring the war in Ukraine to an end?
HOLLEN: Well, I think unleashing a trade war, as the Trump administration has started to do, is only going to hurt peoples in both countries. I mean,
it's going to see rising prices for consumers in the United States and in Europe, and it's going to hurt American businesses when the EU responds, as
it inevitably would. I mean, there is really no option for the EU but to respond, to retaliate, and that is the very dangerous cycle that we could
get ourselves into where everybody ends up losing. So, there is a lot of chaos coming out of the Trump administration. I don't see any coherent
strategy. It's on again one day, off again the next day. It's not just with respect to EU but also Canada and Mexico, and that's why you're seeing such
grave concern in many of the markets.
ASHER: All right. Senator Chris Van Hollen live for us. Thank you so much for coming on the program. We're grateful. We appreciate it.
All right. Let's bring in Clarissa Ward, who is live for us in Kyiv. So, Clarissa, I was just talking to the Senator there about the ceasefire, this
30-day ceasefire proposal that Vladimir Putin has to consider. Obviously, Mr. Putin finds himself in quite a dilemma. Just walk us through what he
has to consider before agreeing to a proposal like this.
CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, there are a lot of different moving parts here, Zain. As we have probably already told our
viewers, essentially, the Kremlin right now is playing for time. They're saying that they can't give any answer as to whether or not they will
participate in this ceasefire until it has gone through the appropriate channels with the U.S. directly talking to the Russians about this
proposal.
And essentially, they have two options. Either President Putin can continue to nurture this relationship that he has with President Trump, and can do
everything in his power to continue to make President Trump happy, but he also has to answer to his own public, and don't forget, he was on
television just last week saying, we want the kind of peace that suits us, and he has talked previously about not so much the need for a ceasefire, a
willingness to engage in a ceasefire, but a willingness to engage in negotiations. Now, the 30-day immediate ceasefire that's on offer at the
moment is specifically designed not to get into negotiations. Those negotiations, the nitty-gritty, if you will, Zain, would really only begin
to take place after the ceasefire takes effect.
So, the question is, can President Putin come up with some kind of a balancing act whereby he is able to answer to his own constituents, to the
extent that that is even a priority for him, and also to essentially appease the White House? Because there is a growing realization even inside
Russia that regardless of how much damage this war has inflicted upon Ukraine, it has also exacted a huge toll on Russia, on the Russian people,
on Russia's financial institutions. And there is broadly a desire, I would say, to see this war finally come to some kind of an end. But, he wants to
be able to do that in a way where he can say, we're going to end it on our terms and not on the terms of others being dictated to us.
So, I think there is still a huge question mark as to how President Putin might respond to the events that took place in Jeddah yesterday, and I
think that's exactly, Zain, why you're seeing the Ukrainians really kind of relishing this moment. This was their time to take the narrative back, to
say we're not the impediment to peace here. We're ready to go. Now it's your turn, essentially calling Vladimir Putin's bluff, Zain.
ASHER: Yeah. The ball is in his court. Clarissa Ward live for us there in Kyiv.
[11:20:00]
Thank you so much.
All right. Up next here on One World, one House down, one Senate to go, the push to keep the U.S. government open moves from one side of Congress to
the other. Plus, the future of education in the U.S., how it will be impacted by massive layoffs at the Education Department. That story next.
(COMMERCIAL BREAK)
ASHER: In Washington, all eyes are now on the U.S. Senate, with just two days to go until a government shutdown. The House passed a spending bill on
Tuesday that provides six months of government funding and promotes many aspects of Donald Trump's agenda. Every Republican but one voted yes, and
every Democrat but one voted no. It won't be as easy in the Senate, though, where at least seven Democratic votes are needed. Senate Democrats are
meeting today to talk strategy, but already, several of them are saying they won't. They don't want to be blamed, rather, for a shutdown.
For more on this, let's bring in CNN's Congressional Correspondent Lauren Fox. So, it passed in the House. Thomas Massie, the Republican, voted no.
He was the sole Republican to vote no, and then you had all Democrats voting no, apart from one. What is its fate going to be in the Senate? Walk
us through that, Lauren.
LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Yeah. Senate Democrats are key here, and they are going to be meeting for a special discussion about this
issue in just a short time. We expect that one of the things that they are weighing is the fact that this is not a perfect bill. This is not the kind
of legislation that Democrats would have written themselves if they were in control of both chambers. But, that's the big if, because right now, what
Democrats are weighing is, do they dislike it enough to potentially cause a painful shutdown? And that is really their impossible choice that they are
facing right now. Many senators have sort of pointed out that there are no good options at this moment.
Like you noted, House Democrats were largely unified in voting against this proposal, but they did have the luxury of not being responsible for the
bill not passing. That is not the same situation that Senate Democrats find themselves in, because despite the fact that Republicans control that
chamber, they only have 53 votes, and we do expect that one Republican, Senator Rand Paul, likely will vote against this proposal. That means that
at least eight Democrats would be needed at that moment to pass this legislation and avert a shutdown before the Friday midnight deadline.
So, Democrats weighing their options right now.
[11:25:00]
I talked to Senator Dick Blumenthal earlier today. He told me that he is leaning no, but he is open to his mind being changed in this meeting in a
couple of hours, because he did know, despite the fact that Democrats feel like this piece of legislation does give the Trump administration too much
flexibility to make the kind of spending decisions that Democrats want to harness them back from, he did argue that allowing a government shutdown to
take place potentially gives Trump a lot of latitude to decide what kind of government workers are essential, what agencies are essential, what's not
essential. He said that that could be just as dangerous.
So, that's what Democrats are weighing in this moment. And with any potential shutdown threat, the party that causes that shutdown always has
to consider, how are you going to get out of it once you're in a shutdown? How prolonged could it be? And I think that's another big question that
Democrats are wrestling with right now.
ASHER: All right. Lauren Fox on Capitol Hill for us. Thank you so much.
All right. The seismic push by Elon Musk and Donald Trump to shrink the federal government has come into full force at the Department of Education.
(VIDEO PLAYING)
ASHER: Despite chants from supporters hoping for a reprieve, the Education Secretary announced on Tuesday that she is laying off about half of the
people in her department. It's all part of Donald Trump's intention to completely eliminate the department altogether. Here is what the new
Education Secretary told Fox News.
(BEGIN VIDEO CLIP)
LAURA INGRAHAM, FOX NEWS HOST: Is this the first step on the road to a total shutdown?
LINDA MCMAHON, U.S. EDUCATION SECRETARY: Yes, actually it is, because that was the President's mandate. His directive to me clearly is to shut down
the Department of Education.
(END VIDEO CLIP)
ASHER: Department of Education officials say the cutbacks will not affect the financial aid packages that make college affordable for many students.
The National Education Association, the nation's largest teachers union, accused Musk and Trump of taking a wrecking ball to public schools. And so,
the real victims will be the most vulnerable students.
All right. Many Americans have watched their investments shrink this week, mostly because of uncertainty over the looming trade wars. After the break,
why Donald Trump says that he is not concerned. Plus, the Philippines former leader is due to arrive at The Hague soon. Why he being charged with
crimes against humanity? We'll have more on this when we come back.
(COMMERCIAL BREAK)
[11:30:00]
(COMMERCIAL BREAK)
ASHER: All right. Welcome back to One World. I'm Zain Asher in New York. Here are some of the international headlines we are watching for today.
U.S. Secretary of State Marco Rubio says he'll talk to Russia in the coming hours about the ceasefire with Ukraine. He announced on Tuesday that
Ukraine had agreed to the 30-day ceasefire. Despite the hope for peace, Ukrainian officials say an overnight Russian attack killed at least 14
people. So far, the Kremlin has not commented on the proposal.
Rodrigo Duterte is due to land in The Hague in the next hour or so. The former Philippine President was arrested Tuesday in Manila. The
International Criminal Court charged him with crimes against humanity for his brutal and deadly crackdown on drugs when he was in office. His plane
made an extended top stop in Dubai, during which Duterte reportedly received medical attention.
In Greenland, the pro-business opposition party won Tuesday's parliamentary election, and party leader Jens Frederik Nielsen will now hold coalition
talks with other parties. This as U.S. President Donald Trump continues to talk about annexing the territory. The race was dominated not only by
Trump's aggressive stance, but also growing calls for independence from Denmark. Nielsen's party favors a go-slow approach on independence.
A new CNN poll shows 56 percent of Americans disapprove of Donald Trump's handling of the economy. This as his sweeping 25 percent tariffs on all
steel and aluminum imports kick in. Trump backed off doubling that tariff for Canada when the government agreed to suspend a surcharge on electricity
to U.S. customers.
All right. Staying with the economy, Justin Wolfers writes in today's New York Times that there are two main reasons to be optimistic about the
economy. The hard numbers prove that we're in good shape, and its current health determines its future health. Justin Wolfers joins us live now. He
is an Economics and Public Policy Professor at the University of Michigan. So, just talk to us a bit more about how resilient the U.S. economy is at
this moment in time. We got some optimistic numbers when it comes to inflation. But, given the trade war, given Europe retaliating, given the
fact that Canada is now retaliating, why should we be so optimistic, and talk to us about the strength and resilience of the economy here?
JUSTIN WOLFERS, PROFESSOR, UNIVERSITY OF MICHIGAN: Look, like you and like your viewers, I've got a bit of a lump in the back of my throat as I look
at everything that's happening in Washington and see, frankly, economic madness, if not sabotage. The question is, is that going to be enough to
knock us off course? For sure, right now, for all the talk there is about a recession, the U.S. economy is not in a recession. Trump inherited a very
healthy economy, unemployment down near 50-year lows, inflation getting back to normal, economic growth progressing. And as far as we have actual
hard data so far, that very strong economy has continued. The big question is, how much, when, and where we'll see the impacts of some of Trump's more
reckless actions?
But, do realize it does take a lot to knock an economy off course. We're fortunate that the rest of the world, the rest of the global economy, seems
to be pretty quiet times right now. And so, if there is a shock to be managed, it's an internal shock, and I mean that in itself is quite
unusual.
ASHER: So, what will the Federal Reserve need to be keeping in mind as it gathers for its policy meeting next week, in terms of March 18th and 19th?
I believe, obviously there are so many factors to weigh. Yes, they got relatively decent numbers when it comes to inflation, but obviously there
are fears about a slowdown in the U.S. economy and rising prices, given the trade wars that we're seeing taking place.
WOLFERS: Well, jingo. I feel for the folks at the Fed. They delivered an almost picture-perfect soft landing. We had high inflation and a pretty
strong economy, and they've managed to move it to the point where we have low inflation and a pretty strong economy. And the text of the last year
and a half has been pretty much exactly what you would have hoped for, and then the White House has delivered them a very uncomfortable situation. The
problem with tariffs is they hurt the Fed in both directions of what it cares about. First of all, tariffs are going to raise inflation. Inflation
raise prices, and they're already raising inflation expectations.
The other thing the Fed cares about is keeping the economy moving strong. But, the thing is, tariffs are going to weaken the economy.
[11:35:00]
So, while it may want to raise rates in order to get rid of the extra inflation caused by the tariffs, it's going to want to lower rates in order
to offset the economic weakness that Trump is causing. You add on top of that an enormous spike in economic uncertainty, which, all by itself, might
be enough to spark an economic downturn, and the Fed is really in a very, very difficult place right now.
ASHER: And just in terms of what we're going to see, what EU member states are going to be having to worry about right now. I mean, the thing is, this
is not their first go-around when it comes to Trump imposing tariffs and tit for tat sort of trade wars. Obviously, they experienced the same thing
during Donald Trump's first term. We saw what happened in 2018. Walk us through why you think it's different this time around. What are the
different factors that are going to be weighing and determining whether or not we experienced a recession, and also what happens with various EU
economies as well?
WOLFERS: It's a good point. We've seen this movie before. So, let me start by what's the same. Remember, there was just as much shock at the election
of President Trump in 2016. Yet, the American economy, the European economy and the global economy kept on motoring forward. The real problems arose
when there was a real problem to be dealt with. That was the start of the COVID pandemic. And an ill-equipped administration did a very, very poor
job.
What's different this time? Well, I think it's an even more ill-equipped administration, but also, the scope of the disruption that Trump is trying
to impose on the rest of the world, is orders of magnitude larger and more worrying. The last time he looked at tariffs on steel and aluminum and
washing machines, and that was just about it. Now, he is talking about tariffs on just about every good, with just about every trading partner, at
very, very high rate. So, this is a much sharper shock to the global trading system at exactly the same moment where, whether you're talking
about Canada or Ukraine, he is rewiring the global world order in a way that I think is causing a lot of investors a lot of worry, and that worry
in itself could be its own economic problem.
ASHER: All right. Justin Wolfers live for us there. Thank you so much.
All right. President Donald Trump has just welcomed the Irish Taoiseach Micheal Martin to the White House. Let's take a look at some of the live
pictures that we saw there. They are greeting each other. The Irish Taoiseach typically comes to the U.S. around St. Patrick's Day, which is
being celebrated here on Monday, to really acknowledge the bond, the centuries-old bond that exists between the U.S. and Ireland. Some of the
topics that are going to come up for discussion this time around is, of course, the tariffs that we just saw implemented in terms of the
retaliatory tariffs that we saw from the EU, and this trade war that is brewing between the U.S. and the EU.
Also on topic for discussion will be the Ukraine war and the Gaza war as well. The Irish Taoiseach does not typically see eye to eye with U.S.
policy when it comes to the war between Israel and Gaza. We will hopefully have a little bit more just in terms of them answering questions and taking
questions from reporters a little bit later on the show. We'll bring that to you live.
All right. Still to come, a standoff in a New York courtroom over free speech, as lawyers for a Palestinian activist fight the Trump
administration's effort to deport their client over his role in student-led protests. Plus, U.S. envoy Steve Witkoff is in Doha for a fresh round of
ceasefire hostage negotiations between Israel and Hamas. What we can expect to hear from the closed-door meeting, just ahead.
(COMMERCIAL BREAK)
[11:40:00]
(COMMERCIAL BREAK)
ASHER: All right. Happening now, attorneys for Palestinian activist Mahmoud Khalil in a New York courtroom fighting to get their client brought back to
New York days after he was arrested and his green card revoked. Khalil was detained Saturday by immigration officials for his role in pro-Palestinian
protests last year on the campus of Columbia University. He was sent to an ICE facility in Louisiana. In New York this week, hundreds of protesters
have held demonstrations demanding Khalil's release, arguing that his arrest goes against free speech.
Our Senior Crime and Justice Correspondent Shimon Prokupecz joins us live now outside the courtroom with more. So, he is not even there, Shimon. He
is actually in an ICE facility in Louisiana. His wife wants him brought back. I mean, she is pregnant. She wants him brought back to New York. I
understand that obviously a hearing is taking place as I speak. But, in terms of what we know so far, it is procedural. Walk us through whether or
not any sort of decisions are going to be made today.
SHIMON PROKUPECZ, CNN SENIOR CRIME AND JUSTICE CORRESPONDENT: Well, the judge just indicated in court that he expects this to be largely
procedural. So, that means, perhaps, certainly indicating that no significant decisions will be made. We'll see what happens as arguments get
underway. I think they're trying to get the lay of the land right now to see even if this court has any jurisdiction over this matter, because
deportation hearings, these kinds of matters are normally handled in an immigration court. It's an entirely civil proceeding. And so, that's
handled outside of the federal courthouse, and once that process gets underway, you could bring it to a federal court. So, I think that is some
of what is happening right now.
As you said, he is not in court. He is in Louisiana, but many of his supporters have been showing up here. We're seeing them out here today.
Just want to give you a quick look. People are speaking now. There are signs here demanding his release. We're also seeing signs protesting the
ICE. That's the agency that generally is responsible for the removal of people who they believe are here illegally. And so, while his supporters
are all out here, voicing their opinion of what is happening here, this is raising a lot of civil rights questions.
Certainly, attorneys are all raising questions of whether or not the government has the right to do something like this, because what's so
different about this case is that Khalil is a green card holder, and what we're seeing now is the United States, the Secretary of State Marco Rubio
revoking that green card and saying, because of his activities, Khalil's activity on the campus of Columbia in the protests, specifically handing
out leaflets that that somehow gives them enough right at this point to deport him, because, in essence, they're arguing that this served, that he
acted against the United States' interests. And so, as a result, this is at least what they're telling us yesterday, that this is one of the reasons
they're saying they can remove him.
And so, this obviously is also raising a lot of questions about the First Amendment. A little unprecedented here, for sure. So, we'll see as this
goes what the judge here decides, whether this stay is just procedural or whether any significant decisions are made for the judge. He is not here
today. We don't expect at this point that he will be released. That is something that his attorneys want to happen as soon as possible. But,
again, today, I'm not sure we're going to get that decision from the judge.
ASHER: All right. Shimon Prokupecz live for us there. Thank you so much.
All right. Another round of Gaza ceasefire talks are expected to take place in Qatar this week. U.S. Middle East envoy Steve Witkoff will be at the
closed-door meeting with Arab officials in Doha. The first phase of the fragile ceasefire deal between Hamas and Israel expired almost two weeks
ago.
[11:45:00]
Witkoff was a key mediator in that deal. U.S. Secretary of State Marco Rubio says the U.S. has had one-off talks directly with Hamas for the first
time ever over the past few weeks, but they have not bore any fruit.
I want to bring in now the Managing Director for Middle East and North Africa practice at Eurasia Group, Firas Maksad. Firas, thank you so much
for being with us. So, in terms of just sort of laying out what mediators want here, they want to sort of extend the current deal. They're pushing
Hamas to release 10 hostages in exchange for a 60-day truce. Walk us through what Hamas needs to consider before agreeing to these terms.
FIRAS MAKSAD, MANAGING DIRECTOR FOR THE MIDDLE EAST & NORTH AFRICAN, EURASIA GROUP: Yeah. Well, a couple of things here, Zain. One is, yes,
there is that kind of short-term ceasefire, getting to stage two of that crucial ceasefire to maintain a hold on the war in Gaza, making sure that
we don't go on to full-on hostilities again, which Israel has threatened to do. But, there is also what's being discussed is kind of the broader plan
of the day after, which is you might recall, President Trump had wanting to turn Gaza into a Riviera by pushing out and displacing most Palestinians as
it is being rebuilt, and there was a counterplan put forward by the Arab states in a crisis meeting of the Arab League.
So, Witkoff will be meeting with five Arab foreign ministers today in Doha to discuss the longer-term vision too. But, when it comes to the shorter
term here, in terms of how to get to phase two of this ceasefire, Hamas has to contend with the fact that it has very poor cards to play at this point,
and Israel has military leverage. So, I suspect that, given that there has been an unprecedented direct engagement between the United States and
Hamas, this is somewhat of a sweetener for them. They want to sort of go in and take advantage of that wedge now between Israel and the United States.
Israel very unhappy about the United States holding direct talks with Hamas.
So, I think that some kind of deal will probably be forthcoming, allowing for an extension, maybe a two or three-week extension of that phase one of
the ceasefire, as negotiations commence on phase two.
ASHER: So, as you point out, Hamas doesn't have the cards to play at all here. Israel is obviously far mightier when it comes to their military
powers. But, if this sort of the current phase of the ceasefire is agreed to, and if it does allow for more negotiations when it comes to pushing
towards phase two, how does this move Israel closer to its stated original goal of completely defeating and destroying Hamas over the long term?
MAKSAD: That's a great question, and in fact, that's kind of part of the ongoing negotiations. Thus far, not only Israel, but also the Trump
administration have made it an absolute necessity that Hamas not be part of any governance of the future -- over the future of Gaza. And in fact, the
air plan that had been put forward for the day after stipulates the creation of a committee of essentially a government of technocrats to
govern Gaza in an interim period of six months, and part of what is being negotiated today by Steven Witkoff in Doha is who are -- who -- what
exactly will be the composition of that governing committee for Doha. So, that's something that presumably Israeli Prime Minister Bibi Netanyahu can
take as a success and sell domestically for his constituency.
Another issue here, in terms of what Israel needs to be able to tick a box and declare a success, is the disarmament of Hamas. And while that is a
much more difficult thing to achieve, there are currently ongoing discussions about Hamas potentially laying down its weapons and having them
stored away under the observation of some foreign force, maybe Egypt or another. So, there are various creative formulas being used to address that
issue. So, those are the kind of things right now that are being debated and what Israel would need to declare some kind of success in its efforts
to counter Hamas in Gaza.
ASHER: All right. Firas Maksad live for us there. Thank you so much.
All right. We're all used to seeing President Trump and Elon Musk hang out together, but with the billionaire helping the White House so much, could
the President help him sell a few Teslas in exchange? That story and more coming up after the break.
(COMMERCIAL BREAK)
[11:50:00]
(COMMERCIAL BREAK)
ASHER: As the U.S. Department of Education becomes the latest government department to experience mass layoffs, there are signs that voters aren't
that happy with the way the cost cutting effort is going, and especially with the role of Elon Musk. A new CNN poll conducted by SSRS shows 53
percent of Americans have an unfavorable opinion of the Tesla founder, while only 35 percent have a favorable opinion of him. Donald Trump,
however, continues his unwavering support for Musk, who has watched Tesla shares slump on the back of his work as a presidential advisor. As the
President came to Elon Musk's defense, Tesla stock regained some ground on Tuesday, but some Tesla owners are standing firm, saying they're tired of
being harassed.
CNN's Jason Carroll has more.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN CORRESPONDENT (voice-over): Tesla vehicles on fire at this car lot in Seattle over the weekend. The cause, still under
investigation. A fire erupted at a Tesla charging station in Littleton, Massachusetts, after police say vandals targeted that center last week.
This person caught on camera throwing a Molotov cocktail at a Tesla showroom in Oregon, weeks after police near Portland responded to shots
fired at the same location. It comes as protests have broken out across the country at Tesla locations from New York to California, all in response to
Elon Musk's involvement with DOGE, the Department of Government Efficiency, and its cut to federal workers. He is also facing criticism over his
alignment with far-right politics.
Tesla shares have plunged, losing nearly half of their value since Trump took office and Musk began slashing federal agencies. The richest man in
the world has taken a hit to his fortune, losing $29 billion in net worth on Monday alone, though he is still worth over $300 billion.
Some Tesla owners are feeling buyer's remorse.
ANGELA KENZSLOWE, TESLA OWNER: Had I had the option of purchasing a Cybertruck after the inauguration, I just wouldn't.
CARROLL (voice-over): Others have decided to sell at a loss.
UNIDENTIFIED FEMALE: About $18,000 to $20,000.
CARROLL (on camera): Loss?
UNIDENTIFIED FEMALE: Yes.
CARROLL (voice-over): And those who proudly want to keep driving their Teslas.
KUMAIT JAROJE, TESLA OWNER: I'm going to keep it. I'm going to defend it. So, no, I'm not selling my Tesla. If they don't like my Tesla, don't --
just don't drive it.
CARROLL (voice-over): Kumait Jaroje uses his Cybertruck to advertise his body sculpting business in Worcester, Massachusetts. He says he has been
harassed, his vehicle vandalized, threatening voicemail messages like this left on his phone.
UNIDENTIFIED MALE: Take your (BEEP) gold Tesla, the bunch hill, climb in, and drive down to Florida, or drive to Tennessee.
JAROJE: I refused to get terrorized, so to do something they want me to do, to force me to do that.
CARROLL (voice-over): Tesla owner Angela Kenzslowe knows what it feels like to be on the receiving end of threatening messages.
[11:55:00]
She says driving a Tesla was fun at first, until Musk got involved in politics.
KENZSLOWE: The thumbs down, flipped off, mean-mugged, cut off.
CARROLL (voice-over): She wrote an essay about her experiences for "Business Insider." Then, she says, things got worse.
KENZSLOWE: I've been sent death wishes. So, folks have sent -- I wish that -- I hope, how do they say it, I hope that your Cybertruck catches on fire
with the doors locked and you inside.
CARROLL (voice-over): But, the backlash seems to have only strengthened Musk's relationship with the President. Just today, Trump said he would
look to have attacks on Tesla dealerships designated as domestic terrorism.
TRUMP: I will do that. I'll do it. I'm going to stop them. We catch anybody doing it, because they're harming a great American company. And let me tell
you, you do it to Tesla, and you do it to any company, we're going to catch you, and you're going to go through hell.
CARROLL (voice-over): Jason Carroll, CNN, New York.
(END VIDEOTAPE)
ASHER: All right. Stay with us. We'll have much more news with the second hour of One World after this short break.
(COMMERCIAL BREAK)
END
