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Effects on Former Federal Workers Who Recently Lost Their Jobs Examined; China, Canada, and Mexico Impose Retaliatory Tariffs on U.S. Exports; Representative Jim Clyburn (D-SC) Interviewed on President Trump's Upcoming Address to Congress; Head of FBI New York Division Says He was Forced to Retire; Vatican: Pope is "Not out of Danger," Condition Remains "Complex". Aired 8-8:30a ET

Aired March 04, 2025 - 08:00   ET

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

[08:00:00]

BRIANNA CLARKE-SCHWELM, NORTH CAROLINA GLOBAL HEALTH ALLIANCE: If they're going to stay in North Carolina, if they can afford to stay living here.

SADIE HEALY, USAIDSTOPWORK.COM: It's 13,124 jobs have been lost or furloughed.

KYUNG LAH, CNN SENIOR NATIONAL CORRESPONDENT: Sadie Healy and her business partner have been tracking the ripple effect of the individual U.S. job losses. Organizations and workers are messaging them directly, then they use that data and publicly post on their USAID Stop Work website.

Walk me through some of the hardest hit states.

HEALY: Yes. You have Florida. You have North Carolina, South Carolina.

LAH: In your perspective, especially having the messaging and the phone calls that you're getting, is this very much an American problem?

HEALY: This is 13,000 Americans that just suddenly lost their job, who didn't have a plan and didn't know this was coming. So maybe they have some savings. But like, you make cuts, and that's going to affect your local economy.

UNIDENTIFIED FEMALE: Yes, I can chat with somebody.

LAH: Healey and her partner, Meg McClure, forecast that if all active USAID contracts and grants are cut, the group's base just in North Carolina could lose more than $2 billion. But it's already having an impact now.

RUTH GARFINKEL, FORMER MANAGER WITH USAID CONTRACTOR: I'd like them to know that they are harming ordinary people, and it's really short- sighted and, frankly, cruel.

(END VIDEO TAPE)

KATE BOLDUAN, CNN ANCHOR: This is what a trade war looks like. The new phase in President Trump's tariff plans. Standing by to see now how Wall Street reacts after China and Canada retaliated overnight, and hitting everything from meat and vegetables to the cars you drive. So stand by.

President Trump slamming the brakes also on aid for Ukraine. What does Kyiv -- where does Kyiv go from here? Ukrainian military leaders say it's time for Europe to step up.

And New Orleans security ramping up on this Fat Tuesday as severe weather forces Bourbon Street to rethink Mardi Gras parade plans.

Sara is out today. I'm Kate Bolduan with John Berman. This is CNN NEWS CENTRAL.

JOHN BERMAN, CNN ANCHOR: All right, breaking this morning, we are standing by for U.S. markets to open. This is a live look at stock futures. You can see these are biggish losses in the futures market after huge losses yesterday, some of the biggest of the year. This morning there is a trade war between the United States and its three largest trading partners China, Mexico, and Canada, all responding to these new tariffs from President Trump. And global economies, they are rattled. The Rupert Murdoch owned "Wall Street Journal" calls the president's move, quote, "the dumbest tariff plunge."

Let's go right to China. CNN's Mark Stewart is live in Beijing where the Chinese did respond overnight with arguably measure slightly harsher than the U.S. might have been expecting, Mark.

MARK STEWART, CNN CORRESPONDENT: Absolutely, John. China was really strategic about this. These latest tariffs, these additional tariffs are not only symbolic, but they also are very strong, targeting industries and people who work in areas such as farming, such as agriculture, such as food production, middle America, the Midwest. These tariffs, an additional 10 to 15 percent depending on the product, cover things like cotton, corn, chicken. One item on the list that really caught my attention were soybeans. Why soybeans? China has a very large pork industry. Pigs and pork make up a very prized commodity here. America's soybeans are dependent upon China to feed those pigs, which help fuel that industry.

Something else that's noticeable, the language that we're hearing from the Chinese government, very strong, very forceful, a big shift from even a few weeks, even a few days ago. Let's listen to what one Chinese official said just hours ago here in Beijing.

(BEGIN VIDEO CLIP)

LIN JIAN, SPOKESPERSON FOR CHINA'S FOREIGN MINISTRY (through translator): If the U.S. has ulterior motives and insists on waging a tariff war, trade war, or any other kind of war, China will fight the U.S. till the end. We advise the U.S. to put away its bullying face and return to the right track of dialog and cooperation before it is too late. (END VIDEO CLIP)

STEWART: I've been talking to a number of sources in both economic and diplomatic spheres. They said this was coming. China would only tolerate so much. And now we have these latest tariffs.

And John, this is not really a surprise in the sense it follows China's foreign policy book, it's idea of tit-for-tat. You hurt us, we'll hurt you back. And now China is firing back with some tariffs that really do seem to make an impression, John.

[08:05:08]

BERMAN: Yes, they do. And again the markets ticking down this morning after really bad days yesterday might be an indication that investors see China's response both verbally and on paper as a little bit harsher, a little more revved up than maybe the administration expected. Mark Stewart, it's great to have you there explaining things so clearly.

Obviously, these huge market drops make for an interesting backdrop to the president's address to Congress tonight. Add to that the turmoil with the United States cutting off aid to Ukraine. Let's get a preview of what the president might say tonight before Congress. Sophia Cai, White House reporter for "Politico," is with us this morning. So, Sophia, what are you hearing the president wants to do, as obviously there is chaos happening behind him of largely his own creation?

SOPHIA CAI, WHITE HOUSE REPORTER, "POLITICO": Yes. I think, look, the economic chaos he plans to blame on Democrats. So we'll see some of that. The theme will be the renewal of the American dream. Look, he's 42 days into his presidency, and this is the type of moment that he savors. The spotlight is on him. He's got an audience, and he's really good at the visuals, right? Last time he had a big moment like this on the campaign trail was his debate against former President Biden. And during that moment, he prepared for the visuals, how he would glance at Biden. I mean, those are things that he's very good at.

And in terms of the context of his speech, look, he's going to talk about immigration. This is something that was lost, you know, a little bit, it took a back seat to DOGE. He'll continue to talk about DOGE. He doesn't really have mass deportation numbers to brag about, but what he can talk about and what he will is you're going to hear him say that border crossings dropped. And it is true they have dropped to the lowest numbers in decades. He will also be defending why he is no longer going to be sending military aid to Ukraine and some of the new tariffs that he's imposing.

BERMAN: It is interesting, Sophia, because as you note, the first 42 days of his administration, he's done a lot of things and talked about a lot of things. But the direct focus on the economy, maybe not as much. You think there will be a turn tonight in at least trying to put some of the blame on Democrats?

CAI: I think, yes, he'll turn to saying, look, you know, we've done a lot of talking about the price of eggs. He's going to say that's an economy that he inherited from Biden. So you'll see some of that. He did a lot of that on the campaign trail. And look, if you're a Democrat, you're going to be sitting here. They're going to be bringing a lot of fired federal workers that was a result of DOGE. They're going to highlight some of those big consequences. And they'll say, look, at the end of the day, this is now Trumps economy. You know, the buck stops with him. So that's some of the response that were expecting to see and to hear from Democrats who are going to be in the room.

BERMAN: Sophia Cai, White House reporter from "Politico," great to see you this morning. Thanks so much for sharing your reporting with us. Kate?

BOLDUAN: And joining us right now is Democratic Congressman Jim Clyburn of South Carolina to talk much more about what's about to happen tonight. And also, Congressman, thanks for being here. I want to get straight to some of the latest elements of the president's plans and vision for the country and what he's going to be talking about in part tonight, like halting military aid to Ukraine, essentially giving Zelenskyy an ultimatum. If that is what this is, what happens now?

REP. JAMES CLYBURN, (D-SC): Well, thank you very much for having me. As you can see, I'm flying the colors of Ukraine this morning. I do believe very strongly that we have on the international stage an obligation to our European allies, Ukraine being tantamount among them. I think that what we have seen in the last several days is this administration realigning the foreign policy of our country to line up with that of Russia, a man, Putin, who is trying to reconstitute the old Soviet Union. He has told us that so many times. And why we are becoming a party to that is beyond me.

I would hope that the American people continue to support our alliances around the world, will continue to support NATO because that is what is needed for us to keep a country and a world safe from wars.

[08:10:00]

BOLDUAN: Congressman, I've heard a lot of Republicans saying in the last couple of days that Zelenskyy needs to apologize and he needs to make it right to kind of get things back on track. But is it clear what exactly President Zelenskyy needs to do or say for President Trump to resume the military assistance?

CLYBURN: Well, I think that he is doing it. When he left here after being insulted, uh, in the oval office, he went directly to those NATO countries, went to Europe, uh, because we cannot function properly in this country without our alliances in the European countries. So he went to where he needed to go, into the safe harbor that the European nations supplied him. And they have stepped up to fill that void.

And I think we run a risk here if we continue to go it alone and have all those NATO countries lining up against us. That's not going to be good for our foreign policy, and that's not going to be good for our economy. We are in a trade war already. I would hope that will not become a hot war on the armaments side.

BOLDUAN: Let me ask you about the trade war. So we've now got new tariffs on China, Mexico, and Canada. China and Canada are slapping tariffs back on the United States in return. And I was looking through it this morning. South Carolina potentially could get hit hard here because South Carolina exports a lot of things, like cars, number one. Also corn, cotton, and wheat are some of the state's top agricultural exports, which are now targets of China. What does this mean for South Carolina?

CLYBURN: This would be catastrophic for South Carolina. And I hope the voters of South Carolina will take a hard look at this, because they have been voting in a strange way of late. Not only automobiles, but our farmers. Rural South Carolina is very, very important to me. And soybeans. Now, those soybeans leave South Carolina. Much of that ends up in China, where they feed their cattle. And then we will then lose if they have this trade war and they are not honoring their past relationship to us. The farmers of South Carolina are going to feel the pressure in a very strange way.

And by the way, we make more tires -- automobile tires, truck tires, bus tires -- in South Carolina than they make in Ohio anymore. And so we are going to be in a very serious situation if this continues. So I would say to President Trump, this is not the way you should be treating your constituents, a whole lot of them there in South Carolina.

BOLDUAN: You, of course, are the senior Democrat in the House of Representatives, in leadership for many, many years. The president's speech tonight and what happens in the chamber, I'm curious on your take, because I've seen a range of reporting on how Democrats are planning to approach the theatrics of it all. Some saying that it's going to be a more subdued response than maybe we have seen and heard in recent years. But I also have seen in "Axios" just this morning, there is talk among some Democrats looking to disrupt the speech, even bringing props that could include noisemakers. I mean, do you think disruptions are what your constituents want, or do you think disruptions tonight plays into the president's hands?

CLYBURN: I think it will play into the president's hands. I would hope we would not have disruptions. Have demonstrations. You can demonstrate. You know, I'm a product of the 60s. I believe sit-ins were very effective. I have advocated us sitting in tonight. Go, everybody show up. Get in your seats. And when he's introduced, sit in. Don't demonstrate into his hands, but to illustrate how displeased we are with this administration. And how I can believe that we could do that by sitting on our hands, rather than playing into his hands.

BOLDUAN: Congressman Jim Clyburn, thank you very much for coming on this morning.

Make sure to tune in tonight for CNN's full coverage of tonight's presidential address to a joint session of Congress, beginning at 8:00 p.m. eastern.

John? BERMAN: The Congressman wearing the colors and the flag of Ukraine

there this morning.

All right, this is a live look at stock futures. They are ticking downward, still getting worse over the course of the morning. The markets open shortly. This is a reaction to President Trump's tariffs on Mexico, China, Canada, and the harsher than expected reaction from those countries. So we will see where this heads over the next several minutes.

[08:15:00]

New this morning, the head of the FBI's largest field office says he was forced to retire without reason. This comes just after he told agents he was prepared to fight after all the firings at the agency.

And, dozens of construction workers are found alive after comes just after he told agents he was prepared to fight after spending 36 hours trapped under an avalanche.

(COMMERCIAL BREAK)

[08:20:00]

KATE BOLDUAN, CNN ANCHOR: So, the head of the FBI's largest field office is officially out. James Dennehy the top agent in New York, says he was forced to retire, "without reason."

Now, this is just weeks after he wrote to his fellow agents, and there was a lot of reporting around it at the time and urging his staff to "dig in" in the midst of the Trump administration beginning to target some FBI officials. CNN's Josh Campbell joins us now with more reporting on this.

And, Josh, what are you learning?

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT: Well, Kate, this appears to be the latest in a series of purges that we've seen at the top ranks of the FBI. We're talking about the New York Field Office, the largest FBI office, thousands of personnel and the man who led that, Jim Dennehy has just been forced out that according to an e-mail obtained by CNN that he sent to the workforce. I'll read you part of that, he said, "Late Friday, I was informed that I needed to put my retirement papers in today, which I just did. I was not given a reason for this decision."

Now, we've reached out to the FBI for comment asking for more information, but important context here, because last month, amid all these reports of potential mass firings at the FBI, as well as the purging of senior leadership.

Dennehy wrote an impassioned message to the force, essentially telling them, "I've got your back." I'll read you part of that, he wrote that, "Today, we find ourselves in the middle of a battle of our own, as good people are being walked out of the FBI and others are being targeted because they did their jobs in accordance with the law and FBI policy. I'm sticking around to defend you, your work, your families, and the team we call the Flagship. Time for me to dig in."

And I've talked to a lot of FBI employees who appreciated that, you know, someone sticking up for them, trying to defend them amid what they perceive to be, you know, a political fallout here. And I'll read you how he signed off his message yesterday to the workforce on his last day on the job.

He said, "I've been told many times in my life, 'When you find yourself in a hole, sometimes it's best to quit digging.' Screw that. I will never stop defending this joint." And, Kate, he went on to sign off, saying he'll just willingly do it from, "outside the wire."

BOLDUAN: And Josh, just specifically on the FBI, the New York's FBI office, which is the one that Dennehy led, it recently also came under some pretty intense criticism from the now, Attorney General, Pam Bondi.

CAMPBELL: That's right. She has been really focused on the Jeffrey Epstein investigation, demanding all kinds of records from the FBI and prosecutors. She had actually written to Kash Patel, the FBI director, saying that she believed the FBI's New York office was essentially hiding documents from the Justice Department.

This was the office, of course, that Dennehy led. So, I think you take that, the Epstein investigation, her focus on that, which, by the way, we haven't heard, you know, any information to substantiate that documents are being hidden, but that taken with the fact he's been so vocal in trying to defend the force from what many in the FBI perceive to be political retribution, it appeared that he had a mark on him, on his career. And again, he is out now, just one of many senior executives who have been shown the door.

BOLDUAN: That's right. Josh Campbell, good to see you. Thank you for your reporting, Josh, as always.

Coming up still for us, a new health update on Pope Francis this morning. The Vatican saying that he is awake and resting, but he is not out of danger yet.

And Mattel now celebrating International Women's Day with new Barbies honoring female friendship.

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[08:27:40]

BERMAN: All right, new this morning, the Vatican says Pope Francis is, "not out of danger" and that his condition remains complex. This after the 88-year-old suffered two episodes of acute respiratory failure.

Let's get the latest from Rome. CNN's Ben Wedeman is there.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Tuesday morning, the Vatican issued its usual terse, one-line update on Pope Francis, saying he slept all night and now continues to rest, but his health does not appear to be improving.

Monday evening, the Vatican Press Office reported Pope Francis had experienced two episodes of what it described as acute respiratory failure. This underscoring the gravity of the 88-year-old pontiff situation as he struggles with double pneumonia in a special wing here at Rome's Gemelli Hospital.

The Vatican said Monday an accumulation of mucus narrowed Pope Francis' airways compelling medical staff to administer two bronchoscopies. Doctors also fitted the Pope with an oxygen mask to help his breathing.

In the words of a Vatican source, it was a difficult afternoon Monday, not the first time alarms have gone off here and probably not the last. Pope Francis has been in hospital now for 19 days and no one is talking at this point about when he might be able to leave.

I'm Ben Wedeman reporting from Rome.

(END VIDEOTAPE)

BERMAN: All right, new reports just in from Ukraine on the impact of President Trump halting military aid to the country, a country under constant attack from Russia.

And, we have got a live look at market futures, markets open not long from now. I have to say the futures pointing lower and lower as the morning goes on. We've been keeping our eye on this. Perhaps a reaction to what Canada, China and Mexico have done in retaliation to these tariffs laid out by President Trump.

We are standing by for more on this. Our coverage continues.

[08:30:00]