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China Hits Back At U.S. Following Trump's Tariffs; Gabbard Nomination As Intel Director Advances To Senate; El Salvador Agrees To House Deportees & U.S. Citizen Criminals. Aired 2:30-3p ET

Aired February 04, 2025 - 14:30   ET

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

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[14:31:37]

BORIS SANCHEZ, CNN HOST: Today, China is punching back at the United States following President Trump's new 10 percent tariffs on all Chinese goods.

Beijing's retaliation includes a 15 percent tax on U.S. coal and liquefied natural gas. Plus, a 10 percent tariff on U.S. crude oil and large cars and pickup trucks. Those tariffs are set to go into effect on Monday.

This, of course, is the latest chapter in President Trump's trade war following yesterday's last-second deals with Canada and Mexico, resulting in Trump hitting the pause button on a massive 25 percent tariffs on some of the U.S.'s closest neighbors and trading partners.

Those tariff threats rattled financial markets and the business community.

We're joined now by Mark Zandi, chief economist for Moody's Analytics.

Mark, great to have you as always.

I want to talk about the specific sectors and products that Beijing is targeting with these retaliatory tariffs, coal, liquefied natural gas, crude oil, agricultural machinery, vehicles, certain metals. Why those items?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, it's symbolic. You know, this is a slight jab back in response to the Trump administrations larger tariffs on China.

I think they picked products that might be in industries that are more favorable to the Trump administration's politics and policies. The fossil fuel industry would be a good example. The -- you mentioned liquefied natural gas, coal, crude oil.

And of course, the farmers. The agricultural sector is very vulnerable to trade actions by China. And while not stopping or exports of U.S. agricultural products to China or putting tariffs on U.S. agricultural products, they put it on ag machinery. Again, more of a symbolic move just to say, hey, you know, we're going

to respond if you push us too far here but not go so far as to really cause a full-out trade war.

So, you know, it's not great, but it does feel like the Chinese want to negotiate and to come to terms here and not go down a full-fledged, full path of a trade war.

SANCHEZ: China's Commerce Ministry brought a complaint against these Trump tariffs to the World Trade Organization. Does that do anything?

ZANDI: No. That's more symbolic, again. You know, the WTO, the World Trade Organization, was a, you know, a very active body adjudicating trade disputes prior to President Trump's first term.

But during his -- during his first term, he bypassed the WTO and made it more made it essentially obsolete. It neutered its effectiveness. So since then, it really has not been at all very helpful in helping adjudicate these disputes that -- that arise.

So, you know, again, it's another symbolic move. Just like the -- the step they took to investigate Google for antitrust violations. You know, Google has stepped back from China in a significant way already. Their operations are relatively small.

But, you know, by doing this, they're signaling, you know, their intent to, you know, push back if they get pushed.

SANCHEZ: Yes. Trump is expecting to speak with Xi Jinping in the next 24 hours. What are you looking for to come out of that call?

[14:35:06]

ZANDI: Well, I'm hopeful that they, you know, figure out a way to get through this without imposing broader-based tariffs. You know -- you know, if it's broad-based tariffs, the U.S. and Chinas relationship, trading relationship is the largest in the world by orders of magnitude.

And if we get in a full blown trade war with China, you know, we raise tariffs on the Chinese, the Chinese do it on our product, you know, the entire global -- our economy, the Chinese economy, the entire global economy will be in big trouble.

So, you know, stock prices will be down. It'll be a mess. So hopefully, Xi and President Trump can figure out a way forward without that happening.

SANCHEZ: We shall see.

Mark Zandi, always appreciate your analysis. Thanks for joining us.

ZANDI: Sure thing.

SANCHEZ: Brianna? BRIANNA KEILAR, CNN HOST: People are fleeing the Greek island of

Santorini after a series of earthquakes rattled the popular tourist destination over the past several days.

This is one of the headlines that we're watching this hour. Thousands of people crowding into Santorini's port, waiting to leave the island by ferry. And Greece's largest airline has added more flights trying to help people leave.

Drone footage over the island shows empty streets. Authorities urging people not to gather indoors, a risk which has prompted emergency services to set up outside in tents.

Also, a teenage girl has died after she was bitten by a shark while she was swimming in a popular tourist area on Australia's east coast. The attack happened on an island about 50 miles from Brisbane. A resident said, while sharks are common in those waters an attack so close to the shore is unusual.

And California homeowners, already devastated by wildfires, could see their insurance rates go up. State Farm is seeking a 22 percent emergency rate hike from the California Insurance Commission, describing it's financial situation as dire.

The state's largest insurer says it's already paid out more than $1 billion to customers in the wake of these fires. The Insurance Commission says State Farm's request raises, quote, "serious questions about its financial condition, and the agency will urgently respond to the request."

And we do have some breaking news. Let's go to Manu Raju on Capitol Hill.

Manu?

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Yes, Tulsi Gabbard in her nomination to be the next director of National Intelligence, it was just cleared a major hurdle. The Senate Intelligence Committee approving her nomination by a nine to eight vote in a closed session.

Now, this vote was expected to be party lines going in. Democrats had made clear that they we're going to oppose this nomination, concerned about a number of her positions in the past.

Republicans, a lot of them were strong supporters. Several of them were skeptical, ultimately, did come on board after she gave some of them some key assurances.

So this nine-to-eight vote means the full Senate will take up this nomination in the coming days, where she can only afford to lose three, at most, Republican votes, assuming all Democrats do vote against her for this very important position that oversees the entire intelligence community.

Now, right before this vote, we caught up with Senator Todd Young, who is an Indiana Republican, someone who had been wavering about this nomination, concerned about some of Gabbards positions in the past.

As well as how she would deal with potential leakers in the intelligence community and her past concerns -- his concerns about her past statements about Edward Snowden.

He indicated that he had conversations not just with J.D. Vance but also with Donald Trump over the weekend. He said that Trump urged him to vote his conscience. He said they had a good conversation.

He also said he spoke to Elon Musk as well. Musk has been a vocal proponent of Tulsi Gabbard.

Young indicated that there was no threats to him at all. He said that there was just his efforts to try to get reassurance that she would deal with people who leak classified information, come down on them, would not support their efforts to try to push out unauthorized disclosures of classified intelligence. That was enough to get him to yes.

And other Republicans, also, Susan Collins of Maine, who sits on this committee, a swing vote on so many issues, indicated that she would support this nomination going in.

So nine to eight, this vote, expected to be on -- was expected to be on party lines. All indications are that it was on party lines -- now has the full Senate which will consider this nomination after weeks of battling to get her across the finish line -- Brianna?

KEILAR: All right. Manu Raju, live for us from the Hill, thank you.

[14:39:24]

And we'll be right back.

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SANCHEZ: A source tells CNN that a military flight carrying migrants is expected to head to Guantanamo Bay today. President Trump said the plan is to house as many as 30,000 deportees there.

We're also learning of a first-of-its-kind diplomatic deal with El Salvador that could possibly lead to the deportation of American convicts. Secretary of State Marco Rubio announced the agreement after meeting with the leader of El Salvador yesterday.

KEILAR: The secretary says El Salvador agreed to accept deportees of any country, as well as house violent criminals who are American citizens.

The deal is alarming human rights groups. Even Rubio questioning if it is legal, saying, quote, "We'll have to study it on our end."

El Salvador's president posting online that American convicts could be sent to its infamous mega-prison for a fee.

He said, quote, "The fee would be relatively low for the U.S., but significant for us, making our entire prison system sustainable."

CNN's David Culver last year went inside what is known as CECOT, where as many as 40,000 inmates are incarcerated.

(BEGIN VIDEOTAPE)

DAVID CULVER, CNN SENIOR CORRESPONDENT (voice-over): And then above that, three meters of electrified fencing.

UNKNOWN: That's 15,000 volts.

CULVER (on camera): Fifteen thousand volts.

(voice-over): More than a thousand security personnel, guards, police and military are stationed on-site. Inmates are assigned to one of eight sectors.

(on camera): The director tells me the inmates, once they're inside one of these sectors, they never leave. Everything is done within, including doctors as well as legal visits or court hearings.

(voice-over): Each sector holds more than two dozen large cells.

(on camera): Roughly 80 inmates per cell but it can fluctuate.

(voice-over): Most bear the markings of the gangs that held this nation hostage for decades, committing brutal acts of violence.

[14:45:06]

MARVIN VASQUEZ, PRISONER: You got to kill people and you got to rob. You got to do what you got to do to survive.

CULVER (on camera): You have to do those things?

VASQUEZ: Yes. You got to do that.

CULVER (voice-over): We meet 41 year old Marvin Vasquez, shackled and heavily guarded.

(on camera): What gang were you part of?

VASQUEZ: M.S.-13.

CULVER: And do you have any gang affiliations?

VASQUEZ: Yes. I'm tattooed up.

UNIDENTIFIED MALE: It's a miracle with M.S.

CULVER: What is it?

VASQUEZ: Crazy Criminal. Say crazy criminals. Yes. I made this click in 2011.

CULVER: You made the clique? VASQUEZ: Yes.

CULVER: You were a gang leader?

VASQUEZ: Yes.

CULVER: What is it like to live here?

VASQUEZ: It's probably not a hotel, five star, but they give you the three times the food. They give you some programs. You go to -- you go to do exercise.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

VASQUEZ: Some church religion program, too.

CULVER: But that's limited to just 30 minutes a day. The other 23 and a half hours, they're kept inside and locked up.

(voice-over): For inmates who get violent with other prisoners or guards --

UNIDENTIFIED MALE: We're going to close the door.

(on camera): I just want to get a sense of -- wow.

(voice-over): -- solitary confinement awaits.

(on camera): The only light you get is through this hole, and they can be in here for 15 days, potentially.

All right. I'm ready to get out.

The director brought up that a lot of folks will raise concerns from a human rights perspective, and an abuse of human rights, that he's calm hearing that because he sees it day to day. The process they go through to maintain, as he sees it, proper punishment.

(voice-over): While you're cut off from society, hear whispers of life on the outside, make their way in.

VASQUEZ: I've heard about it, that it's a new El Salvador, it looks different.

MAYIB BUKELE, PRESIDENT OF EL SALVADOR: (SPEAKING FOREIGN LANGUAGE)

CULVER: That new El Salvador has emerged under President Nayib Bukele, who took office in 2019 and declared a controversial state of emergency more than two years ago. It sparked an aggressive crackdown on crime. We see that firsthand as some 2,500 police and soldiers deploy into one neighborhood.

(on camera): It's going to go on through the night for however long it takes for them to root out any suspected criminal elements.

(voice-over): Critics argue Bukele's strategy has given him far reaching power to suppress dissent and silence any opposition.

Late last week, as the U.S. State Department lowered its travel advisory for El Salvador citing a significant reduction in crime, it also warned that Bukele's emergency measures allow authorities to arrest anyone suspected of gang activity and suspends constitutional rights.

And yet most we meet seem unfazed by the added show of force.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

CULVER (on camera): I asked him, I said how do you feel with police and soldiers? I mean, there's a couple of dozen just even right outside his door. And he said, no, I feel safe.

(voice-over): El Salvador now has one of the world's highest incarceration rates.

The most hardened criminals brought to CECOT, where inside a life sentence awaits.

VASQUEZ: We did bad things. We paid the rough way, doing time.

CULVER: And yet, for many on the outside, the prison now a symbol of newfound freedom, the new El Salvador as they see it.

David Culver, CNN, El Salvador.

(END VIDEOTAPE)

KEILAR: Our thanks to David for that.

[14:48:36]

And ahead, anxious days at the FBI, as we have learned that agents have filed a class-action lawsuit as they're worried about retaliation for their legitimate work on the January 6th investigation. We'll have that next.

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[14:53:17]

KEILAR: The White House says President Trump plans to attend Sunday's championship battle at the New Orleans Superdome.

SANCHEZ: And Trump is set to make history as the first sitting president to be inside Caesar's Superdome as we take a live look at downtown New Orleans for the big game.

CNN sports anchor, Coy Wire, is in New Orleans with more on the excitement that's building.

What's going on, Coy?

COY WIRE, CNN SPORTS ANCHOR: I'm outside the Eagles team hotel. Just spoke to some of the players. If this Super Bowl matchup is anything like the one from two seasons ago, a rematch is going to be fantastic. That game was two points shy of tying the highest-scoring Super Bowl ever.

The Eagles are led by their star quarterback, Jalen Hurts. And in that game, Super Bowl two seasons ago, he set a quarterback Super Bowl record, rushing for three touchdowns. Now he's an MVP candidate.

Running back running, alongside him is Saquon Barkley. Their defense is playing lights out, so look out.

As for the Chiefs, they're led by their all-world quarterback, Patrick Mahomes, who's on one of the most impressive runs we've seen in NFL history. Five Super Bowls in seven seasons, including three wins.

We caught up with some of the players last night at opening night to ask them about this big moment. Listen.

(BEGIN VIDEO CLIP)

DAQUON BARKLEY, PHILADELPHIA EAGLES RUNNING BACK: You just got to take it all in. This is part of it. You got to enjoy it. So I'm happy to be here, happy to have conversations with you guys.

At the same time, you know, it's a business and you stay locked in, but today, you enjoy it.

PATRICK MAHOMES, KANSAS CITY CHIEFS QUARTERBACK: It kind of brings you closer together when people are rooting against you. You just kind of - you become a tighter brotherhood in that locker room.

And you know that we're doing it the right way and we can bring it, bring it, bring ourselves together. Have Chiefs kingdom with us and go out there and try to win the game against everybody.

(END VIDEO CLIP)

[14:55:01]

WIRE: Well, Brianna and Boris, there are festivities all week long. Sometimes there are surprises.

And we joined New Orleans Saints all-star linebacker, Demario Davis, last night with his wife, Tamela, when they were there to surprise one of the first responders from the deadly terror attack that happened just about a month ago here in the wee hours of New Year's Day in New Orleans on Bourbon Street.

And Stevie Kels (ph), she's a nurse practitioner here, a supervisor at the university's hospital. And she has spent 30 years of her life here in New Orleans.

And she treated 26 patients that night. It was an incredible moment. It turns out she was surprised with two Super Bowl tickets, and she is going to the game as a Chiefs fan. It's her team. It's her favorite team. SANCHEZ: Wow.

WIRE: So it all works out so wonderfully for her. Great way to kick off the week.

SANCHEZ: And a chance to potentially see history in a three-peat by the Kansas City Chiefs.

Coy, I'm not going to ask you for a prediction for the game, but I am wondering, what are you eating during the Super Bowl?

WIRE: Oh, man, you know that I've - I've had my share of benye (ph). I've benye (ph), done that -- Boris?

(LAUGHTER)

WIRE: It's just getting started. Going to cross and get the big-boy food and all kinds of gumbo. It's about to get ugly over here.

(LAUGHTER)

SANCHEZ: Yes, New Orleans is a great place for food, a great place for a Super Bowl.

KEILAR: I was excited about my wings until Coy --

(CROSSTALK)

KEILAR: -- what he was going to eat.

SANCHEZ: Scrambled eggs --

(CROSSTALK)

SANCHEZ: Yes, yes, scrambled eggs.

KEILAR: -- tailgating food.

SANCHEZ: Coy Wire, thank you so much. Appreciate you.

WIRE: You got it.

SANCHEZ: President Trump's unprecedented transformation of the federal government is underway and could take a huge leap forward as the White House looks to eliminate the Department of Education. The latest developments in just moments.

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