Return to Transcripts main page

CNN News Central

Auto Industry Braces For Disruption, Higher Costs Due To Tariffs; Leavitt: WH To Give One-Month Exemption On Some Auto Tariffs; "Sanctuary Cities" Mayors Testify Before House Oversight Committee; RFK Jr Focuses On Unconventional Treatments Instead Of Vaccines. Aired 1:30-2p ET

Aired March 05, 2025 - 13:30   ET

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

(COMMERCIAL BREAK)

[13:32:38]

BORIS SANCHEZ, CNN HOST: Pennsylvania auto dealer says that because of Trump's tariffs, sticker prices for new cars and trucks are already higher. A new analysis says the tariffs drive up the price of a new vehicle by about $12,000.

And Ford CEO Jim Farley has said that if these 25 percent tariffs kick in, they would, quote, "blow a hole in the U.S. industry that we've never seen."

The White House says there could be an update on Trump's tariff plan later today. It could include a carve-out for automobiles.

Let's bring in David Kelleher, who owns David Dodge, Chrysler, Jeep and Ram in Glen Falls, Pennsylvania.

Sir, thank you so much for being with us.

I wonder what all this back and forth has been like for you as the owner of a car dealership.

DAVID KELLEHER, OWNER, DAVID DODGE, CHRYSLER, JEEP AND RAM: Well, yes, it's -- it's been a little trying, Boris. You know, these are extreme potential hardships. So, you know, it puts my business at risk.

SANCHEZ: Do you have a sense of which cars could become more expensive, if there are any that would become so expensive that they become cost ineffective, and therefore manufacturers stop making them?

KELLEHER: Well, we build our heavy duty Ram in Mexico. That's the 2000 5500 Cavalry and a large -- the Pro-Master vans that go to commercial customers. And then we also build our Compass, which is our economy car, our smaller SUV for the Jeep line.

As well as, ironically enough, the Wagoneer S, which is the new electric vehicle, which surprisingly came out of the gates very strongly, and it would impact all of those vehicles.

As well as in Canada. The Pacifica and our -- the other electric vehicle that we're producing right now. Full electric is -- is the Charger and Challenger.

So all of those vehicles would be impacted in a great way and basically make them unsellable. Because that type of price increase in a sensitive market like we're at, would -- would basically just negate the -- the value of the vehicle, right?

SANCHEZ: Right. I wonder -- and this may sound like a sort of weird philosophical question. But I wonder how you would define an American vehicle because these are American brands, but yet they're largely manufactured in Canada and Mexico.

[13:35:07]

So when someone like Trump talks about buying American made, what does that actually mean?

KELLEHER: Well, you know, the administration's goals are admirable. Number one, bringing jobs back to the United States. And these assembly plants back to the United States.

And also, you know, getting support from both of those countries is -- with regards to immigration and, and fentanyl. So I support all of those measures.

However, taking this extreme measure now -- I mean, we -- we were in NAFTA. NAFTA was clearly defined. And the companies made investments, to -- to -- to that end.

And you can't -- we can't turn on a dime and build a $4 billion facility, you know, assembly plant in the United States in -- in a couple of weeks. I mean, that takes three, four, five years to accomplish something like that and much planning.

So to -- to attack it in that manner, I think it's -- it's kind of like, you know, you -- you've got a wart on your finger and you're going to cut off your arm. I -- it's just the impact to the economy.

And we're not the only ones. Stellantis isn't the only ones.

SANCHEZ: Right.

KELLEHER: I mean, you know, Chevys got investments in there, Ford has investments in there.

(CROSSTALK)

KELLEHER: And meanwhile, the -- the Germans and the Japanese have no tariff impact.

SANCHEZ: Yes.

KELLEHER: So -- so they haven't changed their -- their model hasn't changed a bit.

(CROSSTALK)

SANCHEZ: Sure.

So, David, I hate to interrupt but --

KELLEHER: -- less competitive in the United States.

SANCHEZ: I hate to interrupt, but we have just gotten word from the White House. Karoline Leavitt, the press secretary, in the press room announcing a one-month extension of some tariffs.

Let's listen to this sound byte together, David.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2nd.

But at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.

So the three companies that he spoke to are Stellantis, Ford and General Motors. They requested the call, they made the ask, and the president is happy to do it. It's a one-month exemption.

UNIDENTIFIED REPORTER: And the president --

(END VIDEO CLIP)

SANCHEZ: So, David, that is probably a relief, albeit temporary.

KELLEHER: Yes. Well, it's certainly a relief. But long term, the situation doesn't change. So, you know, immediately it takes situations like the one I explained yesterday, where I have a sold order, a customer that wrote a sold order, we negotiated the deal and it was an $80,000 Ram truck.

That truck, ostensibly, if I understand the tariffs correctly, would become a $100,000 truck. So I was going to be shipped that unit. I'm sure the -- the customer was not going to accept that price increase and that that vehicle would sit on my lot.

So that will take care of these types of short-term issues. But again, long term, I think, it's -- it would be great for the administration to work with these companies and figure out means to -- you know, to enhance our position in America.

I mean, we build a majority of our vehicles in the United States. So, we're already building a majority of our vehicles in the United States.

There's -- but these -- this percentage for -- for a car dealer, this percentage would completely ruin my bottom line. I would become -- I would be -- my business would be in jeopardy if I lose -- if these vehicles gain price at that -- at that cost. SANCHEZ: David Kelleher, appreciate you sharing your perspective and

your experience. Thanks for being with us.

KELLEHER: Thank you. Boris.

[13:39:11]

SANCHEZ: So the mayors of Americas largest sanctuary cities are on the hot seat on Capitol Hill. They're being grilled about their immigration policies amid the Trump administrations crackdown. Well break down what they're saying right after this.

(COMMERCIAL BREAK)

KEILAR: Four big city Democratic mayors are in the hot seat on Capitol Hill today. They're fielding tough questions from Congress about their so-called sanctuary city policies amid the Trump administrations immigration crackdown.

New York City Mayor Eric Adams, Chicago Mayor Brandon Johnson, Boston Mayor Michelle Wu, and Denver Mayor Mike Johnston all appearing today before the House Oversight and Government Reform Committee.

Lawmakers grilling the city leaders about their level of cooperation with federal immigration enforcement.

CNN's Omar Jimenez is here following this for us.

Omar, what's the latest?

OMAR JIMENEZ, CNN CORRESPONDENT: Yes, so these are all mayors of so- called sanctuary cities, even though there's not necessarily a single definition of a sanctuary city.

But generally, they're jurisdictions that might limit local law enforcement cooperation with federal law enforcement in certain circumstances.

Overall, these mayors have talked about honoring ICE coordination when warrants are issued but not necessarily, for example, keeping someone who is arrested in local custody past their release date because of an ICE detainer.

Again, a detainer, not a warrant, as the Denver mayor explained, at one point during an exchange with Congressman Jim Jordan.

That said, all of these cities have seen examples of undocumented immigrants at one point or another commit crimes, some of them violent, some of them coming after having been in local police custody at one point or another.

And that's a lot of what the Republicans in this committee have focused in on and really pushed during some of their questions.

[13:45:05] That said, all of these mayors have pointed to the fact that over the past few years, they have seen drops in murders in their cities. Of course, at the same time, we have -- their cities have seen influxes of undocumented migrants, or at the very least, migrants coming into their cities.

All of these mayors are Democrats and maybe, predictably, have clashed with Republicans at points over this.

Take a listen to one exchange with Boston Mayor Michelle Wu.

REP. PAUL GOSAL (R-AZ): How can you get a comprehensive immigration policy when you're defining it from the very get go? You're building it on false premises and false tenets.

MAYOR MICHELLE WU (D-BOSTON): Respectfully, Congressman, you could pass bipartisan legislation and that would be comprehensive immigration law.

(CROSSTALK)

WU: The false narrative is that immigrants, in general, are criminals or immigrants, in general, cause all sorts of danger and harm. That is -- that is actually what is undermining safety in our communities.

If you wanted to make us safe, pass gun reforms, stop cutting Medicaid, stop cutting cancer research, stop cutting funds for veterans. That is what will make our city safe.

(END VIDEO CLIP)

JIMENEZ: And the latter stuff she was mentioning is things that could be affected or cut as part of the next budget, or as some of the DOGE cuts we've seen as well.

But the hearing is ongoing. And obviously, it's an issue that is not going anywhere and hasn't over these past few years -- Brianna?

KEILAR: All right. Boris -- or pardon me, Omar -- you're here.

(CROSSTALK)

KEILAR: You're in for Boris.

JIMENEZ: I know.

KEILAR: You know, I'm just going to use your names interchangeably.

(CROSSTALK)

(LAUGHTER)

KEILAR: Omar, thank you.

Boris?

SANCHEZ: That is high praise, I should say.

Now to some of the other headlines we're watching this hour.

The man accused of killing four University of Idaho students is asking a judge to withdraw the death penalty as a possible punishment because he has autism, according to a court filing by his attorneys.

They say, because of that, a death sentence would violate his Eighth Amendment protections against cruel and unusual punishment. His trial is set to begin later this year in august.

Also, Catholics are gathering at the Vatican to mark the start of lent without Pope Francis. The 88 year old was forced to miss Ash Wednesday services because he is still in the hospital, battling pneumonia.

However, the pope did deliver an Ash Wednesday prayer, part of which said, quote, "The condition of fragility reminds us of the tragedy of death."

His prayer was delivered by a cardinal to hundreds of Catholics gathered in Rome. The Vatican says the pope slept -- slept well last night with a continued help of an oxygen mask.

And officials investigating the deaths of Gene Hackman and his wife have ruled out carbon monoxide poisoning as a possible cause of death.

The New Mexico gas company says it did find one minuscule leak on a stovetop burner, and several code violations for a water heater and fireplace, but says they are not believed to have been a factor in their deaths.

Still to come on NEWS CENTRAL, Health Secretary RFK Jr's focus on vitamins as an effective measles treatment has doctors worried. We're going to take a look at the evidence behind some of Kennedy's claims as the outbreak in Texas and New Mexico grows.

(COMMERCIAL BREAK)

[13:52:30]

KEILAR: New. Today, a senior CDC official tells CNN some employees reinstated after being fired by DOGE are choosing not to return to the agency because of the, quote, "unstable work environment." That includes some employees who were working on the growing measles outbreak in Texas.

This is news that is coming as Health and Human Services Secretary Robert Kennedy Jr focuses on vitamins as an effective measles treatment and claims the child who died as part of the outbreak was malnourished.

CNN medical correspondent, Meg Tirrell, following this for us.

Meg, doctors are growing concerned with Kennedys messaging here.

MEG TIRRELL, CNN MEDICAL CORRESPONDENT: Yes, absolutely. The concern is that he's talking about these treatments which could muddy the waters from the most proven form of protection against measles, which is vaccination.

So he's been talking about treatments with things like Vitamin A with a steroid, with an antibiotic, with cod liver oil, which he says has high levels of Vitamin A and Vitamin D.

Doctors point out that there is something to this. There have been studies, particularly in countries with a lot of malnutrition and people who are low in Vitamin A, for example, where this can be really helpful for measles.

But they say there's less evidence for this in the United States. And even if there is some suggestion it might help, it's certainly not a substitute for vaccination or for a recommendation from a key health official for vaccination.

And then we heard more full comments from Robert F Kennedy Jr.'s interview with FOX yesterday. It only posted in full after clips aired yesterday. We just heard this from him this morning.

Here's that full clip.

(BEGIN VIDEO CLIP)

ROBERT F. KENNEDY JR, HEALTH & HUMAN SERVICES SECRETARY: The leaders of the community are reporting that the people who are getting sick are people who are -- and the little girl who died, who may -- where malnutrition may have been an issue in her death.

So there's a lot of poverty in that area. The food is kind of a food desert. The best thing that. Americans can do is to keep themselves healthy.

It's very, very difficult. It's -- for measles to kill a healthy person.

(END VIDEO CLIP)

TIRRELL: Now, the Texas Health Department said in a statement yesterday that the child who died was not vaccinated and had no known underlying conditions.

I talked with Dr. Paul Offit, a pediatric infectious disease doctor, who said that malnourishment would be considered an underlying condition -- Brianna?

KEILAR: Yes, that's a really important point there, Meg.

[13:54:59]

And right now, the confirmation hearing for Dr. Jay Bhattacharya for NIH director is underway. What has he said about vaccination against measles?

TIRRELL: Yes. You know, Senator Cassidy, out of the boat, started asking him about measles and the debunked link with the vaccine and autism and whether he would devote NIH resources to studying that debunked link.

Take a listen to that exchange.

(BEGIN VIDEO CLIP)

SEN. BILL CASSIDY (R-LA): I'm asking the specific question, will we once more have to go back over this particular issue? Because that has been exhaustively studied.

DR. JAY BHATTACHARYA, NIH DIRECTOR NOMINEE: Yes, I mean, I think, as I said, Senator, I don't think that there's a link between -- between, you know, the MMR vaccine and autism. I'm convinced based on that literature.

I -- the only reason I'm not wholeheartedly saying yes to your question, which I every instinct of mine is to do that, is that there are people who might disagree with me. I want to make sure -

CASSIDY: But that's life.

BHATTACHARYA: Yes.

CASSIDY: I mean, there's people who disagree that the world is round.

BHATTACHARYA: That's true.

CASSIDY: And I say that not to minimize these concerns, but -- but people -- people still think Elvis is alive.

(END VIDEO CLIP)

TIRRELL: Now, Cassidy, who is a doctor, emphasized that the more we, quote, "pretend this is an issue, the more we will have children dying from vaccine preventable diseases" -- Brianna?

KEILAR: Wow.

All right. Meg Tirrell, thank you so much.

Coming up, some new details on a critical call between President Trump and Canadian Prime Minister Justin Trudeau as tensions flare over tariffs. Stay with CNN.

(COMMERCIAL BREAK)