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The Story Is with Elex Michaelson
Trump Touts "Transformation" Country In Second Term; Trump Calls Supreme Court Ruling On Tariffs "Unfortunate"; Mexican Forces Try To Restore Calm After Wave Of Attacks. Aired 12:30-1a ET
Aired February 25, 2026 - 00:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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LYNDA KINKADE, CNN ANCHOR: Hello and welcome to all our viewers watching here in the U.S. and around the world. I'm Lynda Kinkade in today for Elex Michaelson.
The top story is President Trump's State of the Union address, the longest on record. In his one-hour and 47-minute speech, the President touted his economic policies and leadership on the world stage, claiming they've made the country stronger than ever before.
He focused on his tariff policy, arguing that it's saving the country, protecting world peace, and will one day replace income taxes. He also claimed that inflation is falling, wages are rising, and more Americans are finding jobs.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: People are asking me, please, please, please, Mr. President, we're winning too much. We're not used to winning in our country. Until you came along, we're just always losing. If you agree with this statement, then stand up and show your support. The first duty of the American government is to protect American citizens, not illegal aliens.
But when it comes to the corruption that is plundering, really, it's plundering America. There's been no more stunning example than Minnesota, where members of the Somali community have pillaged an estimated $19 billion from the American taxpayer. We have all the information. And in actuality, the number is much higher than that.
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KINKADE: The President also lashed out several times at Democrats, calling them crazy and saying they should be ashamed of themselves for not supporting his immigration policies or his opposition to transgender care for minors. He urged Congress to restore funding for the Department of Homeland Security and passed the SAVE Act, requiring nationwide voter I.D. CNN's Ivan Rodriguez has more now from Washington. (BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Mr. Speaker, the President of the United States.
IVAN RODRIGUEZ, CNN CORRESPONDENT (voice-over): In the first State of the Union address of his second term, an energetic and defiant President Donald Trump.
TRUMP: The state of our union is strong.
RODRIGUEZ (voice-over): Returned to Capitol Hill to declare what he calls a new age of American prosperity.
TRUMP: After just one year, I can say with dignity and pride that we have achieved a transformation like no one has ever seen before and a turnaround for the ages.
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RODRIGUEZ (voice-over): With the midterm elections at stake and the economy in the spotlight, the President praised several cost-saving initiatives, like lowering some prescription drug prices and cutting taxes. Trump also defended key pillars of his agenda that have been subject to controversy, including his global tariff initiative struck down by the Supreme Court last week.
TRUMP: I used these tariffs, took in hundreds of billions of dollars to make great deals for our country.
RODRIGUEZ (voice-over): And immigration.
TRUMP: We now have the strongest and most secure border in American history by far. In the past nine months, zero illegal aliens have been admitted to the United States.
RODRIGUEZ (voice-over): In a deviation from a traditional State of the Union address, Trump also handed out awards to some invited guests and recognized a gold medal-winning men's hockey team, including star goaltender Connor Hellebuyck.
TRUMP: I will soon be presenting Connor with the highest civilian honor in our country, the Presidential Medal of Freedom.
RODRIGUEZ (voice-over): In Washington, I'm Ivan Rodriguez.
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KINKADE: Well, after weeks of speculation, President Trump finally gave Congress and the world some insight into his approach towards Iran. The President said this about Tehran's nuclear program.
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TRUMP: We are in negotiations with them. They want to make a deal, but we haven't heard those secret words. We will never have a nuclear weapon. I will never allow the world's number one sponsor of terror, which they are by far, to have a nuclear weapon. I will never allow the world's number one sponsor of terror, which they are by far, to have a nuclear weapon. Can't let that happen.
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KINKADE: President Trump concluded by saying he still prefers to cut a deal. His remarks come just days before the latest round of negotiations between the U.S. and Iran, which are expected to take place in Geneva this Thursday. Iran's foreign minister has reiterated that its nuclear program is solely for peaceful purposes and that Tehran, "Will under no circumstances ever develop a nuclear weapon."
We're going to discuss all of this. Joining me now from Los Angeles is Maeve Reston, national political reporter for The Washington Post. Great to have you with us.
MAEVE RESTON, NATIONAL POLITICAL REPORTER, WASHINGTON POST: Thanks so much for having me.
KINKADE: So, Donald Trump delivered the longest State of the Union address on record. And, of course, ahead of that speech, most polls, including CNN's, showed that more than 60 percent of Americans think that Trump is moving the country in the wrong direction. Do you think the speech will move the needle?
RESTON: I really don't. Just having been out there talking to voters a lot recently in swing states like Nevada, what was so striking about the speech tonight was these sort of sunny pronouncements that he's making about the economy. And it's so striking how different those are than what people are really feeling.
They still are feeling the sting of inflation, even if it's gotten better. They're very worried about, you know, these everyday grocery costs. And you heard him there go through like a litany of all of the things that, you know, that are getting better, like gas prices and talking about the gains in the stock market and talking about how inflation has come down.
But it just doesn't match the reality of what people are feeling on the ground. And I just was reminded of, you know, the messaging that Joe Biden tried when he was running for re-election in 2024. Of course, this is a midterm election this year in the U.S. where Donald Trump will not be on the ballot.
But all of that happy talk about the economy and not really doing as much to try to connect with people about what they're feeling, that could potentially be a big risk for Republicans as they head into these critical elections that will really determine whether the President can carry out what he wants to do in his full term.
KINKADE: Yes, it was interesting when Trump said that America is in a turnaround for the ages when speaking about the economy, given that, you know, the GDP figures from last year show that the economy grew by just 2.2 percent, which was slower than under the Biden administration. And of course, that was partly due to the government shutdown. But I want to ask you about the overall response from the Democrats. We saw their response by Governor Spanberger, criticizing in particular the Trump administration's ICE tactics. How do you think that speech will be received?
RESTON: Well, you know, to the extent that people stayed through President Trump's full speech and then on for the Democratic response, you know, I think that she was able to hit all of the points the Democrats wanted to hit there.
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And, you know, in his speech, Trump had argued that he was able to hit all of the points the Democrats wanted to hit there. And, you know, in his speech, Trump had argued that his deportation operations are making the country, you know, safer and that, you know, that his administration is going after the worst of the worst. We know that Americans are really skeptical of those claims at this point.
And a lot of them are really uncomfortable with the way that these operations have been carried out, the shooting deaths that we have seen. And so, you know, Abigail Spanberger there, who, of course, won in an off year election and Democrats hope she will sort of be the pattern that they see in 2026. She made a really forceful case that people are not safer, that the country has been really destabilized by these ICE operations, that, you know, a lot of immigrants who are here and families of immigrants are not feeling safe in their homes.
They're feeling racially profiled. And I think that that is connecting with a lot of voters out there, particularly voters that I have talked to, again, in some of the Western states, who are some of them Latino voters who voted for Donald Trump and were a critical piece of why he won in 2024. They just are not feeling comfortable with the way that all of this has gone down. And Democrats are really trying to exploit that issue as they head into these critical elections.
KINKADE: Maeve, this State of the Union address also had surprise guests, some emotional moments, awards. How does this State of the Union compare to previous addresses in terms of substance versus theater?
RESTON: I think that I don't know that we have ever seen a more theatrical president than Donald Trump. And this certainly was no exception. You know, he thinks about everything in the sphere of entertainment. And he loves to shock and surprise and delight people, his supporters in particular.
And clearly he was trying some of those tactics tonight. But he also, you know, he very much wanted before the speech, he had made it clear to reporters they know that he was going into this planning to stick to the script. And so even though those surprises were built in there and all the theatrics, it was very carefully, carefully planned theater and something that he really takes pride in.
KINKADE: And notably, he did not mention the Epstein files. While many Democrats there will release the files, badges and some survivors are present. How significant is it that he left that out?
RESTON: Well, I think that the country is so focused on, you know, this seeming sort of never ending release of documents, the chaotic way in which it has been done. The survivors, when they were, you know, at a hearing on Capitol Hill recently, were very offended that that Pam Bondi, the attorney general, didn't turn around and acknowledge them. And, you know, we're really seeing them stand as a visible symbol that, you know, of these of these crimes that Republicans are having a very hard time, you know, getting past this discussion and onto the things that they want to talk about.
And the Democrats wearing those buttons was very significant. Obviously, that the Democratic leadership had made it clear at the beginning of the night that they did not want interruptions. They didn't want to sort of play into Trump's hand, but they did make, you know, a very strong statement with the buttons, with having so many of the survivors there. And it just feels like this is, you know, the Epstein files are just a story that is never going to end.
And, you know, the survivors want more of an acknowledgement and they want to see prosecutions. They want to see people be held accountable for their crimes. And at the moment, that seems to be happening more in, you know, in the U.K. than here.
KINKADE: Yes, exactly. Certainly more heads rolling there. Maeve Reston, appreciate your time and analysis. Thanks very much.
RESTON: Thank you so much.
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KINKADE: Still to come, Donald Trump doubles down on his tariffs policy. We've got a live reaction from Beijing to the President's new tariffs. Plus, security is tight in Mexico, where life is getting back to normal. How the killing of a drug kingpin sparked a wave of national unrest.
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TRUMP: Then just four days ago, an unfortunate ruling from the United States Supreme Court. It just came down. It came down. Very unfortunate ruling. As time goes by, I believe the tariffs paid for by foreign countries will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love.
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KINKADE: President Trump there addressing the recent U.S. Supreme Court ruling on tariffs. His latest levies on international goods took effect Tuesday morning. During his address Tuesday, the President predicted tariffs may one day replace U.S. income taxes. Despite the Supreme Court striking down his original tariffs, Trump has said he still has leverage in the global trade war, especially with some international trade deals still in limbo.
CNN's Mike Valero joins us now from Beijing, which notably wasn't heavily mentioned during the President's remarks. Good to have you with us, Mike. So ahead of this State of the Union address, the Supreme Court ruled against Trump's sweeping global tariffs, saying he doesn't have the power to impose that. He's defended that. He's signaled that he's moving ahead with other tariffs. What's the reaction there to this uncertainty?
MIKE VALERIO, CNN CORRESPONDENT: I would say the feeling, far and away, Lynda, is that Beijing is certainly in the stronger position of power when it comes to these trade and tariff negotiations than it ever was. And I think that when we saw the President not rocking the boat when it comes to the United States' relationship with China, that's certainly not him wanting to rock the boat before this key meeting that he has with Chinese leader Xi Jinping coming up when he lands here in Beijing on March 31st and then has meetings with Xi on April 1st and April 2nd.
So certainly, as you alluded to, he said early on in the speech that his tariff wings, they may be clipped, which Beijing and commentators across China are acutely aware of, but he has other tariff authorities which are incredibly strong, like launching trade investigations or launching new tariffs based on national security concerns.
But I thought it was also notable, even though we just had one minute mention of China when it came to Chinese military technology, not guarding the former president of Venezuela, Nicolas Maduro, in his compound in Caracas, we did hear from the Democratic opposition response from Virginia's governor, Abigail Spanberger, certainly criticized Trump's leadership as it relates to China, also rolled into a statement with Iran and Russia as well. So let's listen to that nine-second sound bite we'll talk about on the other side.
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ABIGAIL SPANBERGER, VIRGINIA GOVERNOR: But as the President spoke of his perceived successes tonight, he continues to cede economic power and technological strength to Russia, bow down to China, bow down to a Russian dictator and make plans for war with Iran.
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VALERIO: A little bit longer than I thought it was, but the point still stands. It's certainly huge criticism is coming from the opposition about Trump's leadership when it comes to China. And, you know, it's certainly notable that we've heard in other State of the Union addresses, like from President Biden, for example, in 2024, when he said, we want competition with China, not conflict.
We are in a stronger position to win the competition for the 21st century against China or anybody else. None of that language as this meeting still looms large.
KINKADE: All right, Mike Valerio for us in Beijing. Thanks so much.
The U.S. State Department says the situation in Mexico has returned to normal after the killing of drug lord El Mancho triggered widespread violence. Americans in Mexico are no longer being urged to shelter in place.
More than 100 Mexican Marines are now in Jalisco State to reinforce security. It comes after cartel members went on a rampage when their leader died in a military raid on Sunday. The government says the violence has expanded across 20 of Mexico's 32 states.
It underscores how El Mancho's Jalisco's new generation cartel has expanded its territory in recent years. The cartel's most significant presence is in the darker blue area of that map. Well, the situation has raised concerns about Mexico hosting World Cup matches this summer.
President Claudia Sheinbaum says there is no risk to visitors. CNN's Valeria Leon explains how the attack on El Mancho was executed and shows us the violence that followed.
VALERIA LEON, CNN CORRESPONDENT: When a cartel leader as powerful as El Mancho is taken down, the consequences unfold quickly, from internal power struggles to retaliation on the ground.
Mexican security forces say they have regained control and are working to prevent further violence following the operation that killed the leader of the Jalisco new generation cartel. He was taken down in Tapalpa, Jalisco, a town where Mexican forces carried out that operation. This is what remains in the aftermath of that operation.
Military personnel continue to guard the terrain where the operation unfolded. The area is heavily wooded and difficult to access. It remains partially sealed off, with forensic teams working inside a restricted perimeter.
What is normally a quiet town, known for its natural beauty and weakened visitors, became the center of a major federal security deployment. Tourists staying in the area described hearing helicopters overhead on what sounded like explosions before roads were blocked and access was cut off. But what happened in this town did not stay there.
Within hours of the operation, violence spread across parts of Jalisco. It reached Puerto Vallarta, one of Mexico's top destinations. The third most visited in the country, welcoming more than 6 million international tourists last year, many of them Americans.
With many shops now forced to close, some tourists say they've struggled to find basic necessities, including food and water. Flights were suspended at Puerto Vallarta's international airport, and this morning, President Claudia Sheinbaum addressed the situation.
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CLAUDIA SHEINBAUM, MEXICAN PRESIDENT (through translator): Today there are still no classes, but tomorrow they are hoping that activities will return to normal at the Guadalajara airport. Almost all flights have already resumed, and things are also gradually returning to normal in Puerto Vallarta.
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LEON: But even as flights resume and roads are cleared, the economic impact is already being felt, just weeks before spring break. And for a region that depends heavily on international tourism, the damage may extend beyond burned vehicles and broken windows. The recovery for local businesses may take time.
Valeria Leon, CNN, Mexico City.
KINKADE: The king of Norway is reportedly in a satisfactory condition after being taken to hospital while on holiday. Norway's royal palace says the 89-year-old king was suffering from an infection and dehydration. It happened while he and his wife, Queen Sonja, were on a private holiday on the Spanish island of Tenerife. The palace says the king's personal physician will travel to the island to help the local health service.
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President Trump has wrapped his wide-ranging State of the Union address. We're going to have international reaction to his speech at the top of the hour. But first, more news in just a moment.
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KINKADE: Well, in his address, President Trump falsely claimed to have ended eight wars in the past year. While he has played a role in resolving some conflicts, at least temporarily, the eight figure is a clear exaggeration. Trump also briefly addressed a conflict that has just entered its fifth year, Russia's war in Ukraine.
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TRUMP: And we're working very hard to end the ninth war, the killing and slaughter between Russia and Ukraine, where 25,000 soldiers are dying each and every month. Think of that, 25,000 soldiers are dying a month. A war which would have never happened if I were president would have never happened. As President, I will make peace wherever I can, but I will never hesitate to confront threats to America.
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KINKADE: The U.S. President also claimed that he would end the war within one day of taking office. But that conflict rages on. Ukraine's president says the latest round of U.S. led peace talks with Russia were not, "sufficient." Ukraine's allies showed solidarity on the anniversary of the start of the war. On Tuesday, the Eiffel Tower lit up with Ukraine's national colors. Berlin's Brandenburg Gate was also illuminated in blue and yellow. And crowds marched in the city in support of Ukraine. Ukrainian flags also flew outside the European Union buildings in Brussels, which also showcased Ukraine's national colors.
I'm Lynda Kinkade, thanks so much for your company. Don't go anywhere. We have much more news coming up. The next hour of The Story Is begins right now.
