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The Situation Room

Interview With Frankfort, Kentucky, Mayor Layne Wilkerson; Wife of Man Mistakenly Deported to El Salvador Speaks Out; Republican Budget Battle; E.U. and China Escalate Trump Trade War. Aired 11- 11:30a ET

Aired April 09, 2025 - 11:00   ET

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

[11:01:21]

PAMELA BROWN, CNN HOST: Happening now, breaking news: swift retaliation. Both China and the European Union are responding to President Trump's tariffs. The message from the president -- quote -- "Be cool."

I'm Pamela Brown.

WOLF BLITZER, CNN HOST: And we want to welcome our viewers here in the United States and around the world. I'm Wolf Blitzer, and you're in THE SITUATION ROOM.

ANNOUNCER: This is CNN breaking news.

BLITZER: And we begin this hour with the world firing right back in President Trump's escalating trade war.

Just a short time ago, the European Union announcing it will respond to the 25 percent tariffs on E.U. steel and aluminum. E.U. officials have not given details about those countermeasures, not yet, but they will.

BROWN: Yes, they will.

And also this morning, China has announced its own retaliatory tariffs, 84 percent on all U.S. goods and imports. That comes just hours after Washington's 104 percent tax on Chinese goods kicked in, and it raises the fear level of Americans bracing for these higher prices.

BLITZER: I want to go live right now to CNN's Matt Egan, who's in New York watching all of this.

How are the markets so far reacting on this very busy day?

MATT EGAN, CNN REPORTER: Well, Wolf, fasten your seat belts because it's been a wild ride in financial markets all week.

Traders, investors, they're kind of living and dying on every headline on the trade war. I think the good news is that markets are looking better than they were early this morning. You see, the Dow is down another 250 points, almost 1 percent. The S&P is down a half-percent and trading just above what would be considered bear market territory.

The Nasdaq, though, is holding in. It's actually up on the day. Look, investors are clearly worried about the trade war. I mean, the president is taking a big gamble here. And the fear on Wall Street is that, if you raise tariffs this fast, this high, it will damage the economy and potentially cause a recession.

Now, even though markets are sort of mixed right now, they remain down significantly from record highs that were hit in recent months. The Dow is down by about 16 percent from its record high. The S&P is off by 19 percent. And the Nasdaq is down by 23 percent from its all-time highs.

And we continue to hear economic warnings,J.P. Morgan CEO Jamie Dimon coming out and saying that, yes, a recession is the likely outcome here. RSM economists, they now think that the most likely outcome is that the U.S. is going to be in a recession starting this quarter and that the recession will wipe out 1.5 million jobs.

They argue that there's just too many simultaneous shocks right now, right? There's the trade shock, the financial shock, and the price shock. And so all of these worries are contributing to the ongoing volatility on Wall Street.

BLITZER: And Dow Jones is down, what, 200 -- almost 260 points right now.

What more can you tell us, Matt, about the retaliations that were announced today?

EGAN: Yes, Wolf, well, you have to pay very close attention to these retaliatory actions, because this is what can really hurt U.S. workers and ultimately kill jobs.

So we heard from China, right, Beijing firing back by putting this 84 percent tariff on items that are made in America. And so now you have the situation where the world's two biggest economies are essentially staring each other down in a trade war to see who is going to blink first.

And, listen, China is a key export market for America. I mean, the U.S. sends a lot of chemicals and oil and gas and a lot of different items. Farmers too are going to be caught in the middle here because the U.S. sends soybeans to China.

[11:05:10]

And then we also mentioned at the top the European Union also retaliating. We're still awaiting details on that retaliatory action from the E.U. But I think, when you take a step back this does show how trade wars can get out of hand, right, how there can be an escalatory cycle that's hard to get out of, with each side threatening and actually raising tariffs higher and higher.

And, in the meantime, you sort of have global trade slow down and all of this uncertainty hitting the economy -- Wolf, back to you. BLITZER: All right, Matt Egan in New York for us.

Matt, thank you very, very much -- Pamela.

BROWN: Well, we have heard for some of the president's advisers say repeatedly that these tariffs are not a negotiation. But, at the same time, President Trump appears to almost be bragging about the foreign leaders essentially begging him, as he says, to make a trade deal.

CNN senior White House reporter Kevin Liptak joins us now.

Kevin, what do we know about the potential for trade deals with these other countries?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Well, certainly, the White House is making the case that their door is wide open for these deals to be made.

And we heard the president last night saying that foreign leaders were, in his words, kissing his ass, essentially trying to grovel at his feet to try and get these tariffs lifted. And we do know that a number of countries are starting to send their representatives to Washington to try and negotiate these deals.

For example, representatives from Vietnam will be here in D.C. today to talk about a new trade deal, Vietnam hit with a 46 percent tariff. Representatives from Japan and South Korea also en route to talk with the secretary of the Treasury, Scott Bessent, about these deals that could potentially offer some tariff relief.

And what we have heard from is -- officials is that there are discussions now under way in foreign capitals and among American diplomats about these deal sweeteners that could potentially be used to put on the table to try and come up with some kind of agreement, not necessarily all within this space of trade, items like military cooperation, things like countering the drug trade all on the table, as these countries try and work with the president.

One leader that has so far not called President Trump is Xi Jinping of China. And that, of course, is causing so much consternation in the global markets, as this tit for tat tariff war gets under way. Yesterday, the president said that he did think China was ready to make a deal, but that, in his words, they don't know how to get started.

What we heard from Bessent today was something of a strategy when it comes to China. He says that the U.S. wants to make these trade deals with China's neighbors in Asia before going to Beijing with an offer, essentially saying that they wanted to present a united front to China as this trade war escalates.

But he said that any country that wants to partner with China would be -- quote -- "cutting your own throat," so trying to lay out a strategy there, but also offering a warning that partnering up with China could just make things worse -- Pam.

BROWN: All right, Kevin Liptak at the White House.

Thank you, Kevin -- Wolf.

BLITZER: I want to turn right down to the drama -- and it's serious drama -- that's unfolding up on Capitol Hill.

President Trump is pressuring House Republicans to pass the Senate's budget plan. Just a short time ago on TRUTH Social, he called passage of the tax cut bill, in his word, imperative. But at least a dozen House Republicans say they're not willing to go along with the Senate's plan. The House speaker, Mike Johnson, is planning to force a vote on the floor later today.

I want to go to CNN's chief congressional correspondent, Manu Raju. He's, of course, up on Capitol Hill.

Manu, is Speaker Johnson anywhere near getting this across the finish line?

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Not at the moment, Wolf, but things can change certainly rapidly, especially as Donald Trump lays on the pressure, because his agenda is on the line.

In order to move forward with this legislative agenda, actually draft the details through this process and allow them to pass this bill along party lines in the United States Senate, they need to first adopt a budget blueprint, an identical budget blueprint that can be approved in the Senate and the House.

The Senate has already approved its plan, but the House conservatives are concerned with the changes that were made by the Senate, namely on the issue of spending cuts. In the initial House proposal, they proposed about $1.5 trillion in spending cuts. But the Senate Republicans had some concerns about that. They changed that.

They made it, as a minimal number of cuts, at $4 billion, a major discrepancy between the House and the Senate. And that's why, right at this moment, there are a lot of conservatives threatening to vote no and tank this measure, even though the speaker can only afford to lose three Republican votes along party lines.

And just moments ago, Wolf, I caught up with one of those Republican holdouts, Andy Biggs, a conservative member from Arizona. And he criticized the plan that the speaker is trying to get passed by the House today.

[11:10:00]

(BEGIN VIDEO CLIP)

RAJU: Between resolution, how are you going to vote today if this comes to the floor?

REP. ANDY BIGGS (R-AZ): Well, I haven't even whipped, so I'm not going to tell you.

RAJU: OK, so what is your level -- what is your concern about the Senate's plan right now?

BIGGS: I'm sorry?

RAJU: What is your concern about the Senate's plan right now?

BIGGS: Their plan is unserious, I think, is the bottom line. And if you were to look at the Senate plan, what we see is they want -- they're proposing $4 billion in cuts over 10 years.

And we got a $2.25-trillion-a-year structural deficit that needs to be addressed, and they're not really addressing that.

RAJU: But how -- but, given that, how could you possibly get to yes?

BIGGS: Well, I continue to talk. I continue to work, see what we can find out.

RAJU: Thanks for your time.

(END VIDEO CLIP)

RAJU: And that's the big question, Wolf, whether the president can convince Republicans like Andy Biggs to get to yes, because, if this is approved, then the Republicans can actually draft the details.

The bills that Trump wants to advance would be a massive overhaul of the United States tax code, would include those spending cuts, would have new drilling projects, energy drilling projects, and also a whole host of money for immigration enforcement measures, really implementing the Trump agenda.

But the first step -- this is actually supposed to be the easy step to approve the budget blueprint, but, given the concerns, it shows you how much more work the president has to actually get his agenda onto his desk. But step one begins this afternoon. Can they get those members to yes? A big question for the speaker and the president, Wolf.

BLITZER: I always love, Manu, when you capture and get those members in the halls up there on Capitol Hill.

Manu Raju reporting for us, thank you very, very much -- Pam.

BROWN: Yes, hardest-working reporter on Capitol Hill.

I wonder what his step count is every day, you know?

(LAUGHTER)

BLITZER: Yes, he gets some good exercise.

BROWN: Very high.

All right, still ahead here: Swollen rivers are taking their toll on Kentucky after days of unrelenting rain brought the worst flooding in nearly a century. BLITZER: And how some lawmakers from both sides of the aisle are now

trying to rein in the president's tariff powers.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

[11:16:23]

BROWN: CNN is getting an exclusive inside look at the notorious mega- prison at the center of President Trump's immigration crackdown.

More than 275 migrants deported from the U.S. are being held there, accused of being gang members, and they're living in these same brutal conditions as convicted prisoners.

CNN's David Culver was there.

(BEGIN VIDEO CLIP)

DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT: Critics have said there's a lack of due process, so it's impossible to say for sure.

Questions have been raised about that severity of treatment, and it is seen certainly as harsh. But when you talk to Salvadorans, they say, yes, perhaps harsh, but totally necessary to have eradicated the gangs and to keep them out. The question is, is that same level of treatment necessary when it comes to the deportees that are coming here from, say, the U.S.?

(END VIDEO CLIP)

BLITZER: A Maryland husband and father of three is among that group of migrants in the Salvadoran prison.

The White House admitted Kilmar Abrego Garcia was deported by mistake due to a -- quote -- "administrative error." But the Trump administration is still fighting all efforts to try to bring him back to the United States.

His wife, Jennifer, is joining us now in THE SITUATION ROOM. We have an exclusive interview with her.

Jennifer, our hearts go out to you. We're not using Jennifer's last name, by the way, for privacy reasons.

Thanks so much for joining us.

But give us a sense. It's been weeks since your husband was deported in error. How are you and your kids coping right now?

JENNIFER, WIFE OF KILMAR ABREGO GARCIA: We're very hurt. My kids ask daily, "When is dad coming home?"

BROWN: And you can't give them an -- you can't give them an answer, right? BLITZER: It's so heartbreaking to just hear her voice, yes.

BROWN: Because the White House is still fighting to keep your husband in El Salvador, despite a court order explicitly protecting him from deportation to El Salvador.

I want to take a listen to what the attorney general said yesterday.

(BEGIN VIDEO CLIP)

PAM BONDI (R), U.S. ATTORNEY GENERAL: It was an administrative error as to why he was deported. And he is a known gang member. I testified he was a gang member. And we believe he should stay where he is.

(END VIDEO CLIP)

BROWN: Jennifer, what do you say to these accusations that you just heard from the attorney general that your husband is a known gang member?

JENNIFER: They're wrong, because my husband is not a gang member. He's actually an amazing father, an amazing husband. That's who he truly is.

BLITZER: Jennifer, what was the last time you actually had a chance to speak to your husband? And what did he say about the living conditions at that prison there?

JENNIFER: The last time I spoke to him was March 15, when they were about to board a plane. And since then, I haven't heard from him.

BROWN: What did he say to you? What was that like on March 15? Bring us into that conversation.

JENNIFER: He told me to take care of the kids and to be strong.

BROWN: I know you are being strong. And you're suddenly finding yourself being a single mother, not knowing the fate of your husband. He had that protective order in place from a U.S. judge.

[11:20:00]

What was the concern back then of him going back to El Salvador, where he now finds himself?

JENNIFER: I fear for his life.

BROWN: Why?

JENNIFER: Because they took him to a place where he -- they took him back to a place where they said they would never take him back.

BROWN: And what is your biggest concern with that?

JENNIFER: Is he still alive? Is he OK?

BLITZER: Have you heard anything directly from the Trump administration, Jennifer?

JENNIFER: No. The last thing I heard was...

BLITZER: They don't -- they don't communicate with you at all? They don't give you any updates, nothing?

JENNIFER: No.

BROWN: You said the last thing you heard was what?

JENNIFER: That the judge had granted for him to return by Monday.

But that was not the case.

BLITZER: I know, Jennifer, you're a U.S. citizen. Don't you expect more from your government right now in trying to help you get your husband back to the United States, even after the U.S. government, the Trump administration, admitted he was deported there in error?

JENNIFER: I do.

BROWN: What is your message to the White House right now?

JENNIFER: I want him -- them to bring him back.

I want to know if he's OK. I just want him back with me and the kids. The kids miss him. I miss him.

BLITZER: How old are the kids, Jennifer?

JENNIFER: Five, 9, and 10.

BLITZER: Yes, they miss their dad. They want their dad back home, which is totally understandable.

BROWN: And one of them has -- right. One of them has special needs, right, your youngest, I believe? Is that right?

JENNIFER: Yes, my youngest is autistic, nonverbal, and has intellectual disability.

BROWN: How are you getting through each day right now? I just can't imagine.

JENNIFER: My kids ask, when is he coming home? And I just say, I don't know.

BROWN: The fate of your husband is now in the hands essentially of the Supreme Court after it temporarily paused a deadline to return him to the U.S.

If the court ultimately says the White House needs to bring him back, do you trust that it will?

JENNIFER: I do trust. I trust it.

BLITZER: Let's hope that happens.

JENNIFER: But we just don't know when he's coming...

BLITZER: And let's not forget, he was sent there, by the Trump administration's own admission, in error.

BROWN: Right.

BLITZER: It was an error. It was a mistake. You would think the U.S. government would have the ability, the power to tell those folks down there he's got to come back to Maryland.

BROWN: Just to follow up with you on that note, I know you have been talking to lawmakers, I believe. Tell us about those conversations. Are any lawmakers trying to help you, given that admission from the U.S. government that he was sent as an administrative error?

JENNIFER: I'm not sure. I'm not sure of the question.

BROWN: I just wonder if you have been hearing from any lawmakers on Capitol Hill, whether they're trying to help you at all, given the fact that your husband, by the administration's own admission, was sent to El Salvador as an administrative error?

JENNIFER: I believe so. I believe we have a lot of support from a lot of people.

BROWN: Yes.

(CROSSTALK)

BROWN: All right, Jennifer, well, we really appreciate you taking the time to come on the show and talk about this. It is important to keep a spotlight on what is happening here, and we're just -- we're thinking of you and your children as you're trying to get answers.

BLITZER: Good luck to you, Jennifer. Good luck to your kids, and we hope you will be reunited with your husband very, very soon. It is so important. Thanks very much for joining us.

BROWN: Thank you.

JENNIFER: Thank you so much for having me.

BLITZER: And we will have more news when we come back.

(COMMERCIAL BREAK)

[11:29:07]

BLITZER: Floodwaters are slowly starting to recede across the Ohio Valley after days of torrential rain.

BROWN: That's right.

My home state of Kentucky has been hit especially hard. More rain is in the forecast. And even though it's not expected to make the flooding worse, it could still slow down those recovery efforts that are so important.

BLITZER: And, Pamela, take a look at this.

The famous Buffalo Trace Distillery along the banks of the Kentucky River in Frankfort is completely submerged in floodwaters.

Joining us now is the Frankfort mayor, Layne Wilkerson.

Mayor Wilkerson, thanks so much for joining us.

Tell us a little bit more about the situation in the capital city and how you and your neighbors are actually dealing with it.

LAYNE WILKERSON, MAYOR OF FRANKFORT, KENTUCKY: Hi, Wolf. Hi, Pamela.

And, as you mentioned, not only is the Kentucky River the lifeblood of our capital city; it's also the source of the world's best bourbon. And because we're a river city, we understand the nature of the flooding here. And over the weekend, we really were expecting, based on the projected crest of the river, that we were going to have a record-breaking flood, something we haven't seen since 1978.