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Trump Speaks To Officials In Flood-Hit Kerrville; Trump Accused Fed Chair Of Costing Us A Lot Of Money; 35 Percent Tariff On Canadian Goods Will Start August 1st; Markets Fall After Donald Trump Threatens Canada With 35 Percent Tariff; Amanda Anisimova Shocks The World Number One Aryna Sabalenka; Polish Strawberry And Yogurt Pasta Dish Takes Over Tennis. Aired 4-5p ET
Aired July 11, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: And Director of the Texas Department of Public Safety, Freeman Martin. Freeman, thank
you very much. You're doing an amazing job. Texas Chief of Emergency Management, Nim Kidd. Thank you. Thank you very much. Thank you for
greeting us, too.
Major General Thomas Seltzer of the Texas Military Department. Thomas, great job. Thank you. Really good job. And many, many other officials and
everybody is here. You know, it is amazing. I do these things and often you don't have -- you just don't have a turnout like this. Half of government
is here.
But my administration is doing everything in its power to help Texas. And I can tell you that -- and the Governor will be the first to tell you that
when the request was made for the emergency funds, Kristi, I think we gave it within about two minutes, maybe less, and they had everything they
needed. Right? Right. Immediately.
So we've deployed over 400 first responders and assisted or enabled more than 1,500 rescues. Amazing, 1,500.
Customs and Border Protection and the U.S. Coast Guard have deployed numerous search and rescue crews and they are all over the territory and
trauma teams and beyond this area, you know, the Governor was saying, we have -- we've gone a little bit beyond this area. Oh, there's Dr. Phil,
look at Dr. Phil. You're looking good, Phil, this is a hell of a situation, isn't it?
FEMA has deployed multiple emergency response units, and FEMA has been really headed by some very good people. We have some good people running
FEMA. It's about time, right? We get some good ones. They failed us in North Carolina, but when we got in on January 20th, they fixed it up in no
time. And the Army Corps of Engineers is always around and always strong and brilliant.
We are also taking historic action to ensure that such a nightmare never happens again, and we are going to look and see how can a thing like this,
they could say it is a hundred years, somebody said, it is a 500-year event. It doesn't -- we're not going to let a thing like this happen again
where it can wreak this kind of devastation.
Earlier this year, I directed a sweeping review of the preparedness and critical infrastructure. I think again, I have to say, whenever I say that,
I have to say that the level of professionalism was incredible, but we will all work together to find out exactly what can be done, because they do
want to rebuild, and they're going to.
I just want to say we have a wonderful First Lady and she has done a great job as First Lady and she -- really a very special woman when she saw what
-- and met the people that we met just a little while ago. It is very devastating. And would you like to say a few words, honey?
MELANIA TRUMP, FIRST LADY OF THE UNITED STATES OF AMERICA: My deepest sympathy to all of the parents who lost beautiful young souls. Deepest
sympathy from all of us. To the community, to everybody who lost a loved one, we are grieving with you. Our nation is grieving with you.
We just met with the wonderful families. We pray with them. We hugged, we hold hands. They shared the stories. And I met beautiful young ladies. They
gave me this special bracelet from the camp in honor of the -- all of the little girls that lost their lives.
So we are here to honor them and also to give the support, help. And I will be back. I promised to them and I just pray for them and giving them my
strength and love.
TRUMP: Thank you, honey. It's very nice. Thank you very much.
So I just want to say God bless you all, and I'd like to ask Governor Abbott to say a few words, please. Thank you.
GOV. GREG ABBOTT (R-TX): Well, first of all, thank you, Mr. President. Thank you, First Lady.
The first thing both of you mentioned were the lives that were affected by this. Whenever there is a disaster or catastrophe, the first thing we focus
on is saving lives.
PAULA NEWTON, CNN INTERNATIONAL HOST: Okay, you have been watching a press conference, a roundtable discussion, actually, from the President of the
United States there. That is, the Governor of Texas now speaking.
I mean, just to recap a little bit what he said. I mean, look off the top, both the President and the First Lady have been clearly affected by what
they've seen and heard there on the ground in Texas and made special mention, of course, of the survivors and meeting also with the families of
those who lost loved ones.
I mean, the President himself called them young angels, especially those from the Mystic Camp and the First Lady there just speaking eloquently and
saying that with the survivors and with the families of those that have lost so much in this disaster, they said, we prayed, we hugged, and she
pointed out that she was given a special bracelet.
And this is key here, she did promise to come back.
[16:05:07]
Larry Sabato is with us now.
Larry, good to see you, as we continue to watch what unfolds there in Texas. I mean, look, in terms of a President being on the ground at this
hour and the exhaustion of everyone on the ground, and to think they haven't been able to rescue anyone for well over a week. This is really
shock and grief that is now setting in.
So how important is it to have the President on the ground?
LARRY SABATO, DIRECTOR, CENTER FOR POLITICS, UNIVERSITY OF VIRGINIA: Well, Paula, this has become an American tradition. I know it doesn't occur in
every other country, even every democracy, but we expect presidents to appear at the sites of these horrible tragedies.
Now, we also criticize them when they come too quickly. And I think Trump did the right thing in waiting until Friday to show up there, because they
end up interfering in the rescue efforts, and this rescue is going to go on for quite some time in order to recover all of the bodies.
I thought that was -- that was his empathetic, really, as Donald Trump gets. His wife, the First Lady was considerably better, I think in
communicating that empathy. So perhaps she should accompany him on more of these trips.
But this is this is what Americans expect. They also expect to have their federal government do the utmost to solve the immediate problems. And
apparently there were problems getting FEMA, the Federal Emergency Management Agency down to Texas quickly. There were other problems along
the way. The state also has things to answer for, like not providing the sirens and the local governments could have done the same thing. Some did,
but unfortunately, in this particular case, the local government most affected did not set up the sirens.
So it is a good reminder to everybody that we have to think of the worst case scenario, particularly with the devastation of climate change, human
induced climate change, which some people, many people in the Trump administration denies even happening.
NEWTON: I think what is unsettling as well is the kind of reform that the Trump administration wants to bring to bear. Again, I will quote from the
President and what he just said. He said, "We are not going to let a thing like this happen again."
Now, we know that extraordinary climate events will continue to happen. They used to call them 100-year floods, right? They're not. They are every
decade now, and that is if you're lucky.
But Larry, when we talk about some of the reforms that are being introduced here, of course, a lot of DOGE cuts that have already happened in a lot of
departments, including, you know, the weather administrators that are on the scene, and also then now going to FEMA, right? The people that are
responsible for preparing for these kinds of disasters and then helping citizens afterwards.
How delicate is this now when you try and embark on both cuts and reform, when clearly we, the United States has these incredible disasters that so
devastate communities?
SABATO: In a sense, this has also served as a warning to the Trump administration and they were lucky to get it early rather than late. And I
will tell you, I don't think they're going to abolish FEMA. They were once talking about abolishing FEMA, but I've already detected a change in tone
from the administration. Now, they may reduce the size of FEMA, and we will find out if they even do that, but FEMA may have gotten a reprieve.
But I will tell you, it is disturbing to hear from the meteorologists and climate scientists how dramatically the reductions have already affected
the National Weather Service and NOAA. And I would point, people say, oh, well, climate scientists are all liberals. I don't think that's true.
But I would point to the meteorologists, people who have been on air for decades, such as those in South Florida who are now speaking out and saying
because of the cuts at the National Weather Service, because of the reduction in the weather balloons that are being sent up, they will not be
able to make the kinds of accurate forecasts for the big hurricanes that almost inevitably hit Florida in the hurricane season, which we are in now.
You know, that's a massive property loss and even more important, the lives lost and that's something that the administration may want to reconsider,
too, because they're already having problems. There are key personnel vacancies that could have helped in this case and will certainly help in
the disasters inevitably to come.
NEWTON: This is certainly some of the criticism of those DOGE cuts, right? That yes, there is bloat, certainly at the federal government. But if you
do make those cuts, they must be thoughtful because or else they impact people.
[16:10:00]
Now, I want to say CNN's reporting did uncover the fact that maybe the forecast was out there, but there was a key coordinator position, someone
that was going to, for lack of a better term, ring the alarm to say a wall of water could be hitting you in a matter of hours. That seems to be the
missing link in this disaster.
So, Larry, we did hear again, empathy, of course, from the President and the First Lady, but I want to ask you how -- you know, the President, his
recourse, right, he tends to go back to people and say, look, we will get this right. We will continue to go forward, but we will get the mix right.
If you're at FEMA right now and you're trying to decide, I have not heard that the $100,000.00 limit, for instance, has been erased. No one from the
Trump administration has come and said, uh-oh no, now, you know, a million dollar approval without having to go through the Secretary herself.
SABATO: Yes. Well, I will say this. All presidents exaggerate in their rhetoric, but I think that's particularly true of Trump. Trump will always
say he is going to solve every problem completely and totally, and these problems will never happen again, and of course, we know that's not human
nature. And that certainly isn't the nature of government.
People have to try to hold him to it. And of course, this is in a red state, a solidly red state, and it has an enormous MAGA base, Make America
Great Again Trump base and if they start holding Trump accountable for his promises, maybe, just maybe, there will be progress.
NEWTON: Yes, and it is chilling to think certainly, Texas has been through it in terms of climate crisis and they do need to get this right and really
have no time to waste.
Larry Sabato for us. Good to see you. Appreciate it.
SABATO: Thank you, Paula.
NEWTON: Now, the task to locate those still missing is monumental. Boats, heavy machinery and cadaver dogs are being used in the ongoing search
efforts as people sift through piles of debris amid questions about their preparation and early response to the disaster, some of the issues we were
just discussing here.
Local authorities have tried to focus on the efforts of those first responders who managed to safely rescue people from vehicles and homes, and
now continue their search one week on.
My next guest is the deputy editorial page editor for "The San Antonio Express News." Its Editorial Board wrote an open letter to President Trump,
calling on him to do more than just visit parts of Texas that were impacted and consider how his policies affect those communities.
Tony Quesada joins us now. And, Tony, why don't we just continue this conversation, right? I mean, we had heard the rhetoric from the Trump
administration before this disaster. You just heard the President now. Do you have more confidence that what needs to be done will be done? And this
issue of abolishing FEMA will go by the wayside?
TONY QUESADA, DEPUTY EDITORIAL PAGE EDITOR FOR "THE SAN ANTONIO EXPRESS NEWS": Well, that's where our hope is, and that was the purpose of our
editorial. Not that you know, that we think that ours is the dispositive thing that the president is going to look at and make decisions by, but
certainly to get our community thinking about that. And the importance of it and when you hear some of the rhetoric that had been voiced in the past
about FEMA and about, you know, various federal agencies that in some way either prepare for or respond to natural disasters, we would worry that
that sort of glib approach may sound attractive to some people, but you have to look beyond that to its natural conclusions.
What you're giving up in terms of federal capabilities, not that the federal response has always been perfect, but again -- then again, that's
his job to improve it, not to abolish it.
NEWTON: You know, the President was blunt just now, as he always has been about, you know, kind of Texas is exemplary as far as he is concerned,
about the way a state should behave in terms of its relationship with the federal government. And yet, we have heard for days now, and CNN has been
reporting that there were failures at the local level, at the state level, at the federal level.
What do you see the danger now? Because, as I starkly pointed out, this is not the first and not going to be the last climate disaster emergency that
the state of Texas goes through.
QUESADA: Well, the biggest thing is that we don't learn, or the biggest threat is that we won't learn from what has just happened. The part of
Texas that this occurred in has some very unique challenges geographically and geologically that make them prone to this.
[16:15:02]
You probably heard the term Flash Flood Alley, which is akin to Tornado Alley or Hurricane Alley. And so we, as South and Central Texans need to be
keenly aware of this. We need to do a better job of communicating and educating just the average folk who live, work, or vacation in these areas
that while the beauty of these areas is quite attractive and there is no reason we shouldn't be able to enjoy them, we need to be mindful of what
nature can do to turn against us and be ready at a moment's notice to respond.
In some cases, you can mitigate it; in some cases, the only response that's appropriate is to get out of there, and when we reach that point, we need
effective tools to do that and effective response from all levels of government and all the way down to just the rank and file folks.
NEWTON: And so, Tony, help us out here. What was the missing link when you say that everyone has to learn from this so that it doesn't happen again?
What do you think should be done?
QUESADA: Well, you know, we are really trying to examine that and we hesitate to make broad, sweeping pronouncements. But one thing that we have
talked about as an editorial board is the need for kind of for the community appreciation. You know, there was a time and we make this analogy
in some of our discussions, internal discussions, there was a time when everyone knew what to do when sirens went off for bombs. Everyone in
certain parts of the country knows exactly what to do when a tornado siren goes off, or when hurricanes are bearing down, or when tsunamis are
threatening, say, the Northern Pacific Coast. That's part of their cultural DNA.
And we worry that we've lost that. We don't understand the threat that is at our doorstep when we are in these parts of Texas. We are not necessarily
going to withdraw from them. We enjoy them, but we need to then take appropriate steps to do so.
NEWTON: Tony, I appreciate the thoughts there and certainly we will listen right now again, to the President as he takes questions in Kerrville.
TRUMP: -- heroine and I think you've done an amazing job.
Brian, go ahead please.
BRIAN: Thank you, Mr. President. If I could ask you, who was the first person to contact you, to notify you that this tragedy was unfolding.
TRUMP: Probably Kristi, but I was notified by a lot. And Chip called also. Chip was here for -- he thought it was going to be a little flood. He was
going to miss the signing for the Big, Beautiful Bill and he called to apologize. He said he is going to be delayed because of a little flood, and
the little flood turned out to be the biggest flood anyone's ever seen.
So Chip, and -- but Kristi called right away. She was there, I looked -- I looked the next morning, she was right there on the ball.
BRIAN: So I just want to say, as a native Texan, I've received hundreds of messages. I told you that the other day, but I want to tell our
representatives that are here in the crowd today: Thank you for your response. This is Texas strong. President Trump, this is America First
policy in terms to responding to a tragedy like this. Thank you on behalf of Texas as well.
TRUMP: Thank you very much. Well, that's a nice reporter. That's a nice question. That's a nice -- but I like his statement even better. Thank you
very much, Brian. That's very nice.
Yes, please go ahead.
REPORTER: Great to see you, President Trump.
TRUMP: Thank you.
REPORTER: Thank you, First Lady Melania for being here.
I am born and raised in Texas and there is not a person in our state who hasn't been impacted by this tragedy. But what's been so disheartening
recently are these ghouls on the left like Jasmine Crockett and the left wing media who want to point fingers and play partisan games and fundraise
off of this crisis.
And what I love about Texas is we come together in a crisis across party lines, ideological lines. So what is your message? And maybe Governor
Abbott as well, to these folks on the left who are using this to gain partisan points in viral videos?
TRUMP: Well, I will start off by just saying, you know, they've lost their confidence. They've had a tremendous run of bad talent. I don't say bad
luck, I say bad talent -- and all they want to do is criticize. And I hope we can someday be bipartisan, but all they like to do is criticize and this
was they are getting just absolutely clobbered because everyone sees what an incredible job the Governor did.
Everybody in this room, everybody at this table in particular, but everybody in this room did an incredible job and the public knows it. You
know, the public is wise to it. They have automatic -- they have their soundbite. They send out a soundbite and it is supposed to be, you know,
you're supposed to say that. And if you don't say that, they throw you out of the party.
No, they've lost -- honestly, they've lost their confidence. I see some of the people they're putting forward, and those people will only ruin our
nation.
Our nation, a year ago was dead and it was going down, but it was dead. And now we have the most successful nation anywhere in the world. You take a
look.
I was with the King of Saudi Arabia. I was with the leaders of the world recently at NATO. Every one of them said the same thing. They said, you
know, it is the most amazing thing I've ever seen. Your nation was dead one year ago, and now you have the hottest nation, it is the hottest nation,
"hottest."
It is the hottest nation anywhere in the world that every leader is saying that, we are. We are the hottest nation in the world.
We've all gotten together. We've done a great job.
This state has been unbelievable. I work so well with the Governor and with the senators and with everybody in this state. We just -- we just -- we get
it done. We've had some pretty big problems here with the floods and all the different things that we've worked out and we respond very quickly and
they respond very quickly and they spend their money wisely.
You know, we give them a lot of money, but they spend it wisely. I can't say that's true always. Sometimes we give money and they don't spend it so
wisely. They spend it very, very foolishly.
So, Governor, do you want to say a few words?
ABBOTT: Sure. One thing that you pointed out, we all know about Texans, it is part of our bloodstream, and that is we are Texas Tough. We are made for
challenges.
I read a piece the other day, I will just quote one line from it, and that is when the rivers rise, so do we, and we rise to the occasion. And the way
that we do that is by everybody working together. We are one team united. We are Texans and fighting as Texans, we are going to rebuild not just
Kerrville or Hunt or Kerr County, but across entire state, across regions.
We are going to come together and fight together and ensure that we elevate even better, keeping foremost in mind exactly what Dr. Phil was talking
about as we rebuild --
NEWTON: We will continue to monitor this press conference for you as President Trump continues to speak to first responders and local officials
there in Kerr County, Texas.
Now, President Trump says Federal Reserve Chair Jerome Powell is costing the economy a lot of money. Even so, Mr. Trump says he has no plans to fire
him. We will talk about that next.
(COMMERCIAL BREAK)
[16:25:09]
NEWTON: The White House is escalating its attacks on Federal Reserve Chair Jerome Powell, with President Trump accusing him of mismanaging the U.S.
economy.
Mr. Trump told reporters earlier that he still had no plan to fire Powell, but did say the Fed Chair was holding the economy back. Take a listen.
(BEGIN VIDEO CLIP)
REPORTER: Are you going to fire Jerome Powell? The Fed Chair.
TRUMP: No. I think he is doing a terrible job. I think he should be -- no. I think we should be three points lower interest rates. He is costing our
country a lot of money. We should be number one and we are not and that's because of Jerome Powell.
(END VIDEO CLIP)
NEWTON: Now President Trump is using his Budget Director to pressure Powell as well. Russell Vought is taking aim at renovations to the Fed Washington
headquarters. He says Powell is mismanaging that project.
(BEGIN VIDEO CLIP)
RUSSELL VOUGHT, U.S. OFFICE OF MANAGEMENT AND BUDGET DIRECTOR: I know you guys want to make it more about a metaphysical question about the
independence of the Fed. This is about the extent to which this building, this renovation project is horrifying from a cost perspective. And our
administration, both OMB, the National Capital Planning Commission, which now has three new commissioners and as of yesterday is going to be asking -
- is asking very, very tough questions.
(END VIDEO CLIP)
NEWTON: Phil Mattingly is in Washington.
So, you know, parse this for us, Phil. He says he is not going to fire him and yet this pressure, especially if you would listen to Vought throughout
the day, they're accusing him of a lot of wrongdoing here.
PHIL MATTINGLY, CNN CHIEF U.S. DOMESTIC CORRESPONDENT: Yes, and these things are actually connected and it might seem a little bit strange. The
President disdains Jerome Powell as much as he makes very clear that he does on a seemingly daily basis, sometimes many times a day, and they
believe that he is perhaps engaged in some wrongdoing as it relates to this renovation project, then why not take action?
This is the reality behind the scenes, and I think it is important to kind of understand the context here.
The President has both statutory concerns and market concerns, primarily, the latter is what is driving things that his advisers have brought to him
repeatedly when he has weighed the idea of trying to remove the Chairman of the Federal Reserve.
The possibility of kind of a catastrophic market impact of removing the independent head of the U.S. Central Bank, is by far the thing that weighs
on him more than anything else. That's why he has said repeatedly over the course of the last couple of months that he will not fire Jerome Powell.
That does not mean he nor his advisers in particular, over the course of the last couple of weeks, won't ramp up significant pressure on him.
Now, we've seen the rhetorical pressure from advisers really ramp up over the last couple of days. What has been, I think, a more dramatic turn is
what Russell Vought, the Budget Director did yesterday and what the President did yesterday by replacing three members of this panel that,
look, I've been covering Washington for 15 years. I am peripherally aware of the panel. You don't pay a ton of attention to it on a day-to-day basis
and I can tell you the Budget Director doesn't pay a ton of attention to it on a day-to-day basis.
The fact that three loyalists were put on this panel at the same time, the Budget Director, who is a very close ally of President Trump's and a very
talented bureaucratic manager within that administration, is not an accident. And I think they're trying to frame it as if these things are not
connected in public, they are connected and they're not intended to force Powell out necessarily, they are not intended to change the President's
statements about whether or not he is going to fire Jerome Powell.
What they are intended to do is to escalate the pressure as much as possible, not just through public messaging, not just through rhetoric, but
through actions as well, whether or not that has a dramatic impact on what the Fed decides to do in July.
Keep in mind, as you know quite well, this isn't an individual's decision. There is a Federal Open Market Committee Board that votes, and the majority
decides where rates go on a meeting by meeting basis, but there is no question that there is intent behind this. That is not benign and not
related purely to a renovation project.
NEWTON: Yes, and they might -- they believe they might get what they want with the interest rates by just putting this kind of pressure on them. I'd
be willing to bet Jerome Powell isn't going to listen to it, and yet, the issue here is the independence of the Fed Chair and who comes next. Right?
And how far do you believe they'll go down that line?
I mean, if you look at a candidate, the markets only have confidence in the Fed Chair, because they do believe that that Fed Chair is independent of
whatever the Oval Office wants to do with interest rates.
MATTINGLY: It is exactly right, and this isn't you and I just kind of positing this idea. There is a significant amount of economic literature
and research over the course of decades that proves that economies that have a Central Bank that is not independent typically don't do very well at
all. Those that do are the most successful, and there is a reason why that is viewed as a necessity.
Now, that doesn't mean the administration doesn't have a role, perhaps in the regulatory side of things or in the personnel side of things, but it
does matter a significant amount when it comes to monetary policy.
[16:30:02]
Now you make an important point. Jerome Powell only has about a year left in his term. The President is already weighing replacements. There are
three that are considered the leading contenders. Kevin Warsh who is a former Fed Governor; Kevin Hassett, the current top National Economic
Council Director; and Treasury Secretary Scott Bessent, all three have made clear they believe Powell is making mistakes. They believe the current
Central Bank policy is wrong.
I think you can expect that that viewpoint will probably be amped up by all three in the weeks ahead, as they kind of campaign for the job on some
level, and that will likely be read into and to some degree priced into when it comes to markets as they look forward. I think the real question
remains if you want to be very cynical about what's happening over the course of the last 24 hours, you could say that the Budget Director is
trying to give the President the one legal avenue that advisers know they believe they can pursue when it comes to removing jay Powell, and that's a
for-cause delineation. If they believe he has engaged in malfeasance, he has lied to Congress or he has broken the law in terms of how this
renovation project was supposed to take place, then they have cause, that's what they haven't had up to this point and has drawn major concerns on the
legal side of things.
Still, it is a move that markets in and of themselves are likely to prevent. It doesn't change the fact, though, that this just amps up the
pressure on the Central Bank and Jay Powell in particular.
NEWTON: Yes, if they're not going to do anything about Jerome Powell, they certainly are spending a lot of time talking about it.
Phil Mattingly, I really appreciate the explanation there.
Now, Nvidia shares ended the week on a high note, finishing the session half a percent higher. The chip maker made history this week by becoming
the first publicly traded company valued above $4 trillion.
Now, Fareed Zakaria spoke to CEO Jensen Huang. Huang told him that the A.I. systems powered by his chips won't necessarily wipe out jobs. We all want
to listen to this.
(BEGIN VIDEO CLIP)
FAREED ZAKARIA, HOST, FAREED ZAKARIA GPS: Dario Amodei, the head of Anthropic says, just because it's going to be so revolutionary and so
disruptive, you're going to see a massacre of white collar jobs, the people who do, you know, all the routine things in accounting, in law and even
consulting, what do you think?
JENSEN HUANG, CEO, NVIDIA: I would say, if the world runs out of ideas, then productivity gains translates to job loss.
But over the course of the last 300 years, 100 years, 60 years, even in the era of computers, not only the productivity go up, employment also went up.
Now, the reason for that is because, if we're -- if we have an abundance of ideas, ways that we could build a better future. If we were more
productive, we could realize that better.
Now, of course, in a world of zero sum games, if you have no more ideas and all you want to do is this, then productivity drives down, drives -- you
know, it results in job loss.
(END VIDEO CLIP)
NEWTON: See, you didn't have anything to worry about this whole time. OK, still to come for us, Palestinian student activist Mahmoud Khalil speaks to
CNN about the conditions he faced in an ICE detention center. We will have that emotional interview next.
(COMMERCIAL BREAK)
[16:36:30]
NEWTON: President Trump is renewing his threats against Canada now vowing to slap a 35 percent tariff on its goods starting August 1st. A White House
official says it's expected to only apply to the limited number of Canadian goods already facing tariffs. Canada's Prime Minister Mark Carney will
convene his cabinet next week to discuss and have those trade talks. Mr. Carney says Canada is working towards President Trump's new tariff deadline
of August 1st.
Danielle Smith is the Premier of Alberta, and she joins us now. Really good to have you, Premier. As we try and figure out what is going on with the
trade negotiations, so I will start there. What do you know?
And before this happened, I know that you were given a status report as to how those negotiations were going. So, how are they going?
DANIELLE SMITH, ALBERTA PREMIER: Well, I'm encouraged by the fact that there are so many goods that continue to travel across our border tariff
free. And in our province, we have energy, superpower oil, gas. We also have huge agricultural products, those are going across the border tariff
free. Lots of manufactured goods that that start in Canada are going across tariff free.
So, we still have the USMCA agreement that is largely being honored. It's just that I understand that the U.S. is concerned about goods coming by way
of Canada into the United States. I think that's why there's been some of these targeted tariffs. And I'm hopeful that we'll be able to come to an
agreement on that as well, because it benefits both of our economies, if we can continue this tariff free relationship.
NEWTON: Would you say that's the hold up? And if it does hold up this trade deal and there are these punishing tariffs, you know, for months, you have
said you do not believe in retaliatory tariffs. If he goes through with it, do you think it's time -- do you think you'll change your mind on that?
SMITH: I guess I -- and look at what we're seeing tariffs on and it's steel and it's, I guess now, copper, it's aluminum and it's cars, and those hit
different economies differently.
As I said, I mean, the vast bulk of goods going between our province of Alberta and I think most of the western provinces into the United States
aren't tariffed. I also look at tariffs as their own punishment.
When the American government puts tariffs on Canadian goods, it just hurts the American people, the consumers and the businesses who rely on those
products. When we put tariffs on ours, it just hurts our people. So, I don't -- I don't love tariff wars. I don't think that they benefit
consumers. They don't benefit businesses.
But if we can find a way, and I understand -- I think I understand what the president is trying to do, which is to repatriate those critical minerals,
products and industries that are essential to maintaining an industrial base and economy. We share that same aspiration.
So, because we have such great integrated economies, I think Canada is hopeful that the U.S. will see Canada as an extension of a North American
economy, as opposed to judging us the same way that he might some on some other jurisdictions.
NEWTON: Premier Smith, you've been preaching that to the president for months now. He's heard it. He heard it from you directly, one of the first
political leaders to even see the president after he was elected. Why isn't he listening?
SMITH: I think that there were some unfortunate things that got in the way the relationship. You saw that up until a few weeks ago, things escalated
around the digital services tax. And I think to the credit of the Canadian government, they realized that retroactive tax was generated such a small
amount of revenue and was such a huge irritation that they took it off the table.
So, we have seen movement, and so, I still remain hopeful. Everything that we're hearing is that the two leaders are aiming towards coming to --
coming to some agreement by August 1st, maybe before the end of summer, if it -- if it drags on a bit, but I think there's a will on both sides to try
to find some answers to some of these irritants.
[16:40:14]
NEWTON: You certainly sound optimistic. I'd like to know a little bit more about what makes you so optimistic, because certainly the letter posted on
social media that wasn't heartening to many Canadian businesses as you know.
SMITH: I think maybe you'd get a different view if you were talking to Ontario Premier Doug Ford. I mean, both Ontario and Alberta have the
largest trade relationship with the United States. We have $188 billion in Alberta alone. Most of that is oil and gas and our agriculture products. We
just hosted a delegation of 30 American legislators up here for our world famous Calgary Stampede, and we had so many things to talk about in common,
about why that partnership is so strong and will continue to be strong.
I know it's different in Ontario, they're a manufacturing base. They produce all of the things that are under threat of tariffs, autos, steel,
copper.
And so, I think that that's part of the reason, is that we've got a little bit of a different approach in Western Canada, I think that the president
has seen that there are a lot of goods that do benefit the American economy. There are some strategic industries centered in Eastern Canada
that are a little bit more under pressure.
And so, that's why I feel optimistic. I think that if we can build on the strength that we've been able to have in those areas where we have very
clearly common benefit, just extend it to all of the other goods. I think we can get to a deal similar to what we've had in the past.
NEWTON: Premier Smith of Alberta, you have a meeting with the Prime Minister July 22nd, we'd love to have you back right after, we'll see how
this goes.
SMITH: You bet. Thank you.
NEWTON: Thank you, and we'll be right back after a quick break.
(COMMERCIAL BREAK)
NEWTON: So, U.S. markets closed lower after President Trump threatened to slap a 35 percent tariff on Canada, the Dow fell nearly 300 points.
[16:45:00]
Nonetheless, U.S. markets have been on a run recently, with the major indices routinely closing at record highs.
Meantime, JPMorganChase CEO Jamie Dimon says investors underestimate the possibility of interest rates going higher. Dimon told an event in Ireland
that there is a 40 to 50 percent chance the Fed will raise rates. He also warns that the E.U. is falling behind the U.S. economically.
Alan Blinder is a former Vice Chair of the U.S. Federal Reserve. He's now an economics professor at Princeton University, and we are so happy to have
you on the show as we continue to try and figure out what is really going on with this economy.
We will begin, in fact, with the issue of the interest rates, as much as the President continues to push for them to go lower. Jerome Powell has
been very clear that he is still worried about inflation. What do you think? Do you think he's right to be worried about inflation?
ALAN BLINDER, FORMER VICE CHAIR, U.S. FEDERAL RESERVE: Yes, I think he's right to be a little bit worried. I don't think he's apoplectic about it,
and I think if he was going to give you his honest guess, they're not going up, but it is a possibility, and the possibility is governed largely by the
tariffs, their magnitude and their timing, and also by something that's getting a lot less attention, which is the squeeze on the labor force
caused by this immigration crackdown.
These police tactics that we're seeing on the streets of America are ugly, but they're also diminishing the labor force, both the people that are
taken into custody and the people that are afraid to go to work.
NEWTON: And this was predicted and at the same time, that certainly distorts what is going on in the American economy. But could it also bring
up wages for labor as well?
BLINDER: Yes. I mean, that's the good side of it, but, I mean, the good side is being obtained by some very bad behavior. But yes, you cause a
labor shortage, and you bring up wages.
NEWTON: In terms of where the tariffs stand now, and let's be clear, we don't know where they're going to be in three or four weeks. The markets
have been very calm about this.
But do you believe that, you know, a lot of the backward looking data about this, the fact that unemployment is fine, inflation is in check. What do
you think we're going to see in quarter three and quarter four?
BLINDER: Well, I think what you said is very germane. We're starting off now with the economy in very good shape, both on what we call the real
side, that is jobs and GDP growth and things like that, and on what we call the nominal side, which is the inflation rate.
Now, it's not yet down to two percent and the worry is it's going to go up, not down, because of the tariffs. But right now, we're in a very good
position.
You know, I think you can't do this. But if Jay Powell could call a halt and say, let's freeze the frame right here and keep it this way forever, he
would do that. You can't do it, of course.
NEWTON: In terms of what the Trump administration is already doing with tariffs, the Treasury announced a surplus, a substantial one, some of it
certainly thanks to the money the United States is collecting over tariffs, obviously, taxes by another name. How do you see that outlook going in the
next six months?
BLINDER: Well, there will be revenue from tariff not nearly as much as the administration thinks. I don't -- well, I don't know what they think. They
change the tariff schedules about three times a day, so I don't know what they think.
But let's not forget that a very large tax cut was just enacted and signed into law by the president, that's going to dwarf the tariff revenue.
NEWTON: OK, you're used to this, you're an experienced soul. If I had to put you on the spot, given your prior position, what would you do if you
were Jerome Powell, would you keep interest rates as they are, or would you lower them in the months to come? Because you know that US consumers,
whether you have a car loan or a mortgage or a student loan right now, they are suffering.
BLINDER: Yes, I would keep them where they are for now. Now, how long for now will mean depends on a lot of things, including especially the tariffs.
It's not impossible, as we said a few minutes ago, and as Jamie Dimon said, although I wouldn't give it a 40 percent probability that the next interest
rate move will be up, I doubt that. I think the next interest rate move will be down. But it's not a lead pipe cinch, because of the tariffs.
And let's not forget, as Jay Powell and his colleagues on the FOMC are not forgetting, the last big mistake they made was to be too slow on the draw
as inflation rose after COVID, they remember that, and they don't want to repeat the same mistake twice.
[16:50:12]
NEWTON: And Jerome Powell continues to describe inflation as sticky, so we will watch and wait what happens. Alan blinder for us. Thanks so much.
Appreciate it.
BLINDER: Very welcome.
NEWTON: Now, Iga Swiatek pardon me, has advanced to this weekend's Wimbledon finals. We will give you the story behind one of her favorite
foods, yogurt or sour cream and strawberry pasta. Can you imagine? You will after the break.
(COMMERCIAL BREAK)
NEWTON: Carlos Alcaraz will take on Jannik Sinner in this Sunday's men's Wimbledon final. Jannik Sinner bested world number one Novak Djokovic in
three straight sets earlier today. Spain's Carlos Alcaraz is contending for his third straight Wimbledon title.
Now, in the women's draw, American Amanda Anisimova shocked the world's number one Aryna Sabalenka, she'll take on Iga Swiatek in Saturday's final.
Christopher Clarey is the founder of Tennis and Beyond. He is also the author of The Warrior: Rafael Nadal and His Kingdom of Clay. Clarey was at
Wimbledon today. So, what's your take in terms of what you saw on the men's courts?
CHRISTOPHER CLAREY, FOUNDER AND WRITER, TENNIS AND BEYOND: You know it's going to be a great rematch. The French Open final was one of the best
matches ever played. Alcaraz saved three match points, came back to beach center in the final, and here they are about a month later at Wimbledon,
playing on grass now back in the final and both, you know, won pretty handily today, center in straight sets against Djokovic. He was diminished,
but it's going to be a great matchup. I think everybody has a lot to look forward to on Sunday.
NEWTON: And in terms of the women's draw here, I mean, very emotional fact to have an American woman in it this year. And, you know, she had taken so
much time off.
CLAREY: Yes, no American woman has won here since Serena Williams in 2016 so it's a good chance for Amanda Anisimova, who's a 23 years old and was
long considered a potential Grand Slam champion when she was a teenager, had a lot of headwinds. Her father died when she -- when he was quite
young, and she was quite young, and she had to deal with the fallout from that, and she took a break from the game about a year and a half ago for a
few months to kind of reset, work on her mental health. And she's come back a different player and a more, I think, a happier player on the court and
off the court. And it's really showing here at Wimbledon.
[16:55:08]
NEWTON: All right, and we will leave it there, but we will look forward to those matches this weekend. Christopher Clarey, thanks so much.
CLAREY: My pleasure. Thanks.
NEWTON: Iga Swiatek, as we were saying, has introduced a controversial new food into the 10 -- into the world of tennis. OK, it's a Polish dish,
apparently made with strawberries. You can see it there yogurt or sour cream and pasta. Yes, pasta. The tennis star says it's her go to. OK, CNN's
Polish affiliate has the story.
(BEGIN VIDEOTAPE)
MICHAL SZNAJDER, ANCHOR, TVN24: Good evening from Warsaw, where we are uncovering one of the most unexpected secrets behind one of the most
unbeatable forces in women's tennis today, it's pasta with strawberries. Yes, you heard that right.
The combination that makes Italians cry and Iga Swiatek dominate, that just might be her secret weapon. Until now, only poles really knew about it,
because, yes, we do eat it during summer, at least some of us, it's part dinner, part dessert, the best of both worlds. It's a dish born of
necessity. It became popular in communist era Poland, when elaborate ingredients were hard to come by.
So, people made do with whatever they had, and what they did have were wonderful Polish strawberries, especially children loved it, even more so
if to the mashed or sliced strawberries, you added some sugar, a bit of cream, or as we call it, white cheese, Faruq (ph).
And while it might sound like something dreamt up by a very curious and unsupervised 5-year-old or a maverick nutritionist, it's real, and
apparently it works. Adding that strong summer grandma's vibe and fuel for a world class athlete.
What's especially charming is that Iga Swiatek, currently storming through Wimbledon, dropped it casually in conversation, as if the world had always
known about this astonishing dish.
So, perhaps this is Poland's next gift to global sports nutrition and unexpected fuel powered by strawberries, sugar and nostalgia, the next big
food sports craze may have just been served Polish style, and it might just hopefully carry Iga Swiatek all the way to the Wimbledon crown.
In Warsaw, Poland. I'm Michal Sznajder.
(END VIDEOTAPE)
NEWTON: All right, as much affection as I have for the Polish people, OK, my Italian ancestors are going to wonder what this is all about. Now, let's
be clear to the Q&B production team that made this up. This is not Faruq, OK? But it is sour cream, and you can see there, it's pink. What does that
mean? I am told that the strawberries have been mashed up in there. Sweetness apparently to go with the sour of the sour cream or yogurt you
can use, but not Faruq, let's be clear.
And then the lovely, delicious strawberries that are seasonal right now.
Now, another confession from the Q&B team, this pasta, I can't believe it was actually prepared in a microwave.
All right, guys, so here goes absolutely nothing. And again, I apologize to all Italian relatives, some of which might even be watching right now. Yes,
Ma, I'm sorry I'm doing this. Hold on.
Sorry, Poland, I don't get it, nor my mother right now who's watching will not be forgiving me either. I certainly hope it gives you some fuel through
Wimbledon.
That is QUEST MEANS BUSINESS, I'm Paula Newton. Richard will be right here next week. "THE LEAD" with Jake Tapper starts now.
(COMMERCIAL BREAK)
END
