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U.S. Producer Prices Slowed; Chrystia Freeland is Interviewed about Tariffs; Aired 8:30-9a ET

Aired March 13, 2025 - 08:30   ET

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

[08:30:00]

JANE HARMAN (D), FORMER U.S. REPRESENTATIVE: NATO would be first choice, but I gather that's off the table. But a European peace force, maybe. But that's not what's being talked about at the moment.

KATE BOLDUAN, CNN ANCHOR: And one of many big questions, but a key question, since Witkoff is in Moscow, is, what pressure the Trump administration is willing and ready to apply on Russia to abide by a ceasefire. That - is there any inkling of any of that? I mean -

HARMAN: It hasn't been talked about.

BOLDUAN: Yes.

HARMAN: All of this should not be aired in the press.

BOLDUAN: True.

HARMAN: No offense.

BOLDUAN: None - none taken.

HARMAN: But I think we'll get to a better end game if some of this is quietly done. It doesn't seem like it.

BOLDUAN: Yes.

HARMAN: I also saw a report that - that Putin has already rejected the 30-day ceasefire.

BOLDUAN: Apparently casting - the way I was seeing - seeing it just before walking on, they're casting doubt on it. But again, everything is an angle.

HARMAN: But - but to embarrass Trump publicly is not a good look. So, I - I think what - what would be on the table now with Witkoff there? And he's a seasoned negotiator. This is not going to be his particular focus. So, I read again.

But I - what could be on the table is Russian gives to get to a place that Ukraine could accept. Ukraine has to accept the deal. It's not Trump's deal. It's not Russia's deal. It's Ukraine ending a war that was unjustly launched against it. BOLDUAN: And Josh Rogin actually said something yesterday that has

been sticking with me, which is, "in the end, if this fails," meaning the ceasefire negotiation, "how does Ukraine make sure or ensure that Donald Trump doesn't misplace blame and put it on them," like he is kind of, in a roundabout way, been talking about misplacing blame on the beginning of the war. That was an interesting part that I hadn't even considered.

HARMAN: Well, I think we're not even close. I think we should - I hope this war ends. It ends soon. There's enormous loss of life. I also am pleased - one thing that I applaud the Trump administration for doing right now is putting back on intelligence and - and military aid. I mean pulling that led to a lot of Ukrainians being hurt in Kursk and Russia trying to reclaim some of its land and leaving Ukraine exposed. I think it would - would really be unconscionable, given the U.S.' strong support for Ukraine, including by Republicans in Congress. Not that they're speaking up, but - but certainly there is widespread and certainly support in the U.S. public for Ukraine.

BOLDUAN: Absolutely. It's - let us listen to the tone and word - and word choice coming out of the meetings that - when Witkoff leaves and also what we're going to hear from the secretary of state in meetings now as well.

It's great to see you.

HARMAN: You too.

BOLDUAN: Thanks for coming in.

Sara.

SARA SIDNER, CNN ANCHOR: All right, since I'm about to talk about some really good stuff, I need to talk about Jane Harman's shoes, because she has on Fellas.

BOLDUAN: I said (INAUDIBLE).

SIDNER: How cool is she?

BOLDUAN: I know. Jane Harman rocking the sneakers.

SIDNER: Like, come on. This is - this is what I'm' talking about. This is cool. Everyone take note because we're going to start wearing them too. Very cool, Jane Harman. Really appreciate you showing us the real fashion and what it's all about.

All right, ahead, three-year-olds are known worldwide for failing to follow directions, but this time a toddler did exactly what he was told and helped save his grandmother, Sharon Lewis, who had slipped and hit her head really hard while babysitting him.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Had her walker and she fell.

SHARON LEWIS: And when I fell, I hit the corner of the cement step.

UNIDENTIFIED MALE: She bumped her head, and then it popped open.

(END VIDEO CLIP)

SIDNER: Oh, he's so cute.

It was really late at night, and three year old Bridger was her only lifeline. The two were just hanging out together. Lewis told the toddler to please go to her car and find grandmom's phone. And that little tike did just that.

(BEGIN VIDEO CLIP)

SHARON LEWIS: Hurry up. Hurry up. Open the door.

UNIDENTIFIED MALE: Don't be afraid. Yay! I did it!

(END VIDEO CLIP)

SIDNER: I am - going to lose it. That was the sweetest thing. Don't be afraid he kept telling himself. Bridger was very brave because, as you saw, it was really dark and he was all alone. He found his grandma's phone. You heard him scream, I did it! And she was able to call for help. She was taken to the hospital with a concussion. But because of his quick, brave work, she's going to be OK.

All right, just ahead, another key inflation report is now out this morning. What it tells us about the prices wholesalers are paying and what that might mean. You will end up being charged on the other end.

Plus, a volcano in Alaska could soon erupt. You can see here a beautiful, snowy mountain top with smoke coming from the very top.

(COMMERCIAL BREAK)

[08:39:24]

SIDNER: All right, breaking just moments ago, a new look at inflation shows producer prices slowing last month. But is this the calm before the storm? We don't know. But it's a little bit of good news, right?

MATT EGAN, CNN REPORTER: Yes, Sara, our second day in a row we're getting a little bit of good news on the cost of living front. Although I would say, this could be the calm before the storm because it does not fully capture the impact from the trade war.

So, we're talking about producer prices. This is inflation at the wholesale level, before it gets to all of us as consumers. And look at this, prices unchanged on a monthly basis, between January and February, and 3.2 percent increase on an annual basis.

[08:40:03]

Both of these better than expected. Both of them were improvements from the month before.

Let's look at the trend. And you can see, look, two and a half years ago, this figure was skyrocketing.

SIDNER: Yikes.

EGAN: Almost 12 percent inflation on an annual rate.

SIDNER: Wow.

EGAN: It has come all the way down. But there had been concerns because on the right side of this chart, you see, it had been going in the wrong direction. Here you see it ticking lower again. That is a good sign.

When you look at why this happened, one of the factors is energy. We saw an improvement with energy prices coming down in some cases. That, of course, is a big factor.

Also we've got to look at eggs. Again, we're talking about wholesale prices for eggs. People have been dealing with very high prices and fewer and fewer eggs. And we saw that on a monthly basis, egg prices surged by 28 percent between January and February at the wholesale level.

SIDNER: Right.

EGAN: But, again, kind of like yesterday, this is actually an improvement because we had seen a 44 percent spike before that.

Now, the USDA has said that in March, in the last few weeks, we've actually seen wholesale prices for eggs come down because there's been fewer sick birds, there's been less demand.

SIDNER: Right.

EGAN: Of course, demand is going to pick up again because of Easter and Passover coming up. So, eggs remain an issue.

But I do want to stress that this positive news on inflation does not capture the trade war, right? Because all the tariffs hadn't been put in place when this number came out.

SIDNER: Sure.

EGAN: Not the steel and aluminum tariffs that were just kicked in yesterday, not the Canada and Mexico tariffs. And we've seen from economists, from trade experts, that there is this risk that the tariffs, if they stay in place, that they could cause prices to go higher and higher for wholesalers and for consumers as well. And so the question is whether or not all these tariffs, and even just the threat of tariffs, ends up unwinding some of this progress on inflation.

SIDNER: We will have to wait and see, because all these numbers actually would have looked really good for the Trump administration to tout. But then the tariffs came and blew everything up. We will see if they have an impact when we see these numbers again in another month or two.

EGAN: Yes. We'll be paying very close attention. Obviously, consumers are going to feel it all at the store.

SIDNER: All right. Thank you so much. I appreciate it, Matt Egan.

EGAN: Thanks, Sara.

SIDNER: Over to you, Kate.

BOLDUAN: So, happening today, the secretary of commerce, Howard Lutnick, will be sitting down with the premier of Ontario and the Canadian finance minister. The focus very clearly, the trade war. The tariffs already implemented. The tariffs that President Trump has teased are still to come on April 2nd. What would typically be a non- headline grabbing get together between two allies is now a high stakes face to face because Trump's - with this - with this meeting and this gathering today. And about the tariff whiplash that the world has witnessed in just the last few weeks, Donald Trump now has this to say.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I have the right to adjust.

It's called flexibility. It's not called inconsistency. It's called flexibility.

But there will be very little flexibility once we start. April 2nd is going to be a very big day for the United States of America. The United States of America is going to take back a lot of what was stolen from it by other countries.

(END VIDEO CLIP)

BOLDUAN: Joining me right now is the former deputy prime minister of Canada, the former minister of finance, Chrystia Freeland.

It's really good to have you here. Thank you - thank you so much for coming in.

CHRYSTIA FREELAND, FORMER CANADIAN MINISTER OF FINANCE AND FORMER DEPUTY PRIME MINISTER: It's great to be with you, Kate.

BOLDUAN: The president says its flexibility. It's not inconsistency, this whiplash. What do you call it?

FREELAND: I call it inconsistent whiplash. And what I will say, Kate, is, we've just been hearing about the inflation numbers and talking about there being a risk that with the trade war inflation will go up. It's not a risk. It is a certainty. "The Wall Street Journal" is entirely right in saying a trade war between Canada and the United States is the dumbest thing ever. It is self-mutilating for the United States.

You know, if the U.S. moves ahead with these - with this trade war with Canada, groceries are going to be more expensive, energy is going to be more expensive, the stock market is going to continue to tank, and America will be pushed into a recession for no reason at all.

You have a great relationship with us. You know, the relationship between Canada and the United States is balanced and mutually beneficial. It is governed by a trade deal that I negotiated -

BOLDUAN: You negotiated.

FREELAND: That I negotiated, that President Trump himself said was the best trade deal ever. So, this is so entirely pointless. And it's going to hurt Americans. It's going to hurt the people who voted for Donald Trump, because I don't think they voted to pay more for their groceries. I don't think they voted to pay more for their gas. I don't think they voted to lose their jobs. And that's what this is going to do.

BOLDUAN: They actually voted for him to do the exact opposite of that.

I want to ask you about USMCA, actually, in a second. But we did just get the president's - President Trump's latest take on the trade war, talking about the EU and talking about the 50 percent tariff that they are going to be implementing on American whiskey.

[08:45:04]

The president now writes, "if this tariff is not removed immediately, the U.S. will shortly place a 200 percent tariff on all wines, champagnes and alcoholic products coming out of France and other EU represented countries. This will be great for the wine and champagne business in the United States."

I just want to get your reaction to that, because it kind of encapsulates a little bit of what Donald Trump has said very - made very clear, which this is, reciprocal. You hit us, we hit you. And that's all - that's really what's coming April 2nd.

FREELAND: But it's not actually reciprocal because you hit us first. And, you know, from the Canadian perspective, it is just utterly unacceptable. If you hit us, we will hit back. And something Americans need to understand about Canada is, like, I don't think Americans think about Canada all that much. That is fine with us. We don't mind. We are not narcissists. But when you do think about Canada, I think you kind of think, we're really big and Canada is small. To a point. Because the reality is, Canada has leverage in this economic relationship. We are the largest export market for the United States by far. Canada is a more important export market for the U.S. than China, Japan, the U.K. and France combined.

And, like, you guys are the country that invented the phrase, the customer is always right. Well, we're your biggest customer. And at first we were hurt by all of this, but now I would say Canadians are angry. BOLDUAN: How far - how far - so, Mark Carney is about to be sworn in

as - as prime minister. You know him well. Do you think he can handle Donald Trump?

FREELAND: One hundred percent.

BOLDUAN: Because he's coming in -

FREELAND: Mark is going to be a fantastic prime minister. He's the leader of my party. He has my full support. He is going to be terrific. And he has started off on a very, very good, clear note. He has said, you need to respect us. And I would say that is the view of all Canadians.

You have to remember, Kate, that our sovereignty is now being challenged, and that is not acceptable for Canadians. Our sovereignty is not negotiable.

BOLDUAN: How would you describe how far Canada is really - ready and willing to take this if Donald Trump does not back down? He's shown no signs of it.

FREELAND: Canada will not escalate, but we will not back down. And that is the view of the entire country. We know that capitulation is not a negotiating strategy. We know that if someone bullies you, you have to stand strong. So, I can assure you and all Americans, actually, we like you. We have had a win-win relationship for our entire history, and it would be great to get back to that. But if you hit us, we will hit back and we will not treat our sovereignty as a joke, ever.

BOLDUAN: As you mentioned, you negotiated USMCA, United States-Mexico- Canada Agreement, with the first Trump administration. It earned you a lot of attention from Donald Trump himself. That was part of - I know when you were campaigning that was part of your platform.

Is an updated version of USMCA, do you think, a pathway out of this, and also, after negotiating that, can you believe that we are here today?

FREELAND: So, I absolutely think it, you know, trade agreements can always be updated and improved. The USMCA was an updated and improved NAFTA.

BOLDUAN: Right.

FREELAND: And actually, the USMCA, the agreement that currently governs our trade, has this unique quality that both Nancy Pelosi and Donald Trump supported it. That's a pretty big deal. It governs a trading relationship that is balanced and mutually beneficial.

For sure, you can always update agreements and make them even better, but I think the fundamental thing that Americans need to understand, and I'm talking about, like, not the government, but the people watching, is, your relationship with Canada, your economic relationship, it's good for you. The trade between our countries is balanced and mutually beneficial. The stuff you buy from us, you don't buy it like out of the goodness of your heart, you buy our energy because you need it.

I think you're from Indiana, right, Kate?

BOLDUAN: Uh-huh.

FREELAND: OK, so 80 percent of the potash that American farmers use, and that is fertilizer -

BOLDUAN: Right.

FREELAND: You buy from us. You need that too. Uranium for your nuclear reactors. You buy that from us. So, you need the stuff that you buy from us. It's good for you that you get it. There is no country that is a better friend and a more reliable ally than Canada. And, at the same time, we're your biggest market.

So, I have to say, like, for us, we agree with "The Wall Street Journal." This is a dumb trade war. It - it is utterly absurd.

[08:50:01]

And we don't really understand why you would pick a fight with your best friend who has only ever been a really good partner to you. But if you keep on doing it, we'll just keep on hitting back.

BOLDUAN: I think we can say three, two - count three, two, one and see what President Trump is going to - how he will continue - how he's going to respond, and we'll see what happens.

But I really appreciate you coming in.

FREELAND: Thank you very much. My pleasure.

BOLDUAN: Thank you so much.

Sara.

SIDNER: A great interview, Kate. Thank you so much.

A man sets his room on fire. Why did he do it? He says it was to get help because he's been held captive by his stepmother for decades. That story is ahead.

And new details on Donald Trump's plans to roll back the clock on some major Biden policies that fight climate change.

(COMMERCIAL BREAK)

[08:55:12]

BOLDUAN: So, across Texas, New Mexico and Oklahoma, state health departments are pleading for people to get up to date on the MMR vaccine as measles cases are still just exploding. The count is now up to 258 confirmed cases. But America's top health official, Robert F. Kennedy Jr., is sending a different message and definitely a mixed message. In an interview this week, he said that he wants to encourage people to vaccinate, but he also pushed misinformation.

(BEGIN VIDEO CLIP)

ROBERT F. KENNEDY JR., SECRETARY OF HEALTH AND HUMAN SERVICES: It used to be, when you and I were kids, everybody got measles, and measles gave you protection - lifetime protection against measles infection. The vaccine doesn't do that. The vaccine is effective for some people for life, but many people it wanes.

(END VIDEO CLIP)

BOLDUAN: So, to be clear, scientific data show that he's really dead wrong on that. The vaccine does offer lifelong immunity against the virus in almost all cases. That's the primary reason why the United States was able to declare the disease eradicated back in 2000. And now we are here.

We're also watching this. Some other headlines we're watching today.

A Connecticut woman is behind bars. This story is very disturbing. She's behind bars this morning after police say that she held her now 32 year old stepson captive in a room and abused him for decades. The man was rescued after intentionally setting his room on fire in a desperate bid for his freedom. He told police that he's been locked up since he was 11 years old, fed very little food, sometimes forced to drink water from the toilet. The man weighed just 68 pounds when he was rescued and is currently being treated at a medical facility. His stepmother, 56-year-old Kimberly Sullivan, has now been charged with cruelty and kidnaping, among other things. Her lawyer says that she, quote, "maintains her innocence and looks forward to clearing her name."

Scientists at the Alaska Volcano Observatory are warning that the Mount Spurr volcano will likely erupt within weeks to months after they measured a, quote/unquote, "significant elevated volcanic gas emissions" during an overflight earlier this week. Mount Spurr is about 75 miles west of Anchorage, Alaska's most populated city. And while scientists say there is no local threat for a potential - from a potential eruption, minor amounts of ash falling up to a quarter of an inch could impact south central Alaska communities. Just knowing a volcano is erupting right next door, also not something that sounds fun.

File this one under, things that could only happen in Florida. A routine pizza delivery turned into a standoff - it's not an offense to you.

SIDNER: Rude.

BOLDUAN: A routine pizza delivery turned into a standoff with an eight foot long alligator. And it was all caught on camera.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's an alligator right under your car.

UNIDENTIFIED FEMALE: Oh my God.

UNIDENTIFIED MALE: Get in the house.

UNIDENTIFIED FEMALE: Where's my pizza?

UNIDENTIFIED MALE: I'll take it to the back door.

UNIDENTIFIED FEMALE: Holy (EXPLETIVE DELETED). Oh, my God.

UNIDENTIFIED MALE: Go in the house.

UNIDENTIFIED FEMALE: Oh my heaven, there's a big alligator under my car.

(END VIDEO CLIP)

SIDNER: She is all of us.

BOLDUAN: I was going to say.

SIDNER: I love her. She's like, where's my pizza? I don't care.

BOLDUAN: Do we a camera again? Oh, we're back. OK, we're back.

SIDNER: That was amazing.

BOLDUAN: I just want to watch this. Wait, there she is. Look at her.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Yes, I'm a policeman, not a pizza man. You got it?

UNIDENTIFIED FEMALE: Oh, because they called you? Yes.

UNIDENTIFIED MALE: Yes, they called us about the alligator. Are you expecting change from her?

UNIDENTIFIED MALE: No, I'm not. They said it was 32 something.

(END VIDEO CLIP)

BOLDUAN: Oh, my God, she's negotiating the tip.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: OK, I'll give this to her. So -

(END VIDEO CLIP)

SIDNER: Oh, my God, it's $32 for a pizza?

BOLDUAN: Oh, that is what you're harping on?

SIDNER: I'm sorry, I'm just saying. BOLDUAN: That is what we're going to focus on here?

SIDNER: Listen, I'm from Florida. I'm used to gators like that. But $32 for a pizza, now that is scary.

BOLDUAN: So, this is how this would be. I would be the - get in the house. And you would totally be like, where's my pizza? You -

SIDNER: You have to be. I love her. She is me.

BOLDUAN: Wait, there's more for me to read.

A police officer was able to intervene on behalf of the terrified delivery person and deliver the pizza. Officials from Florida Fish and Wildlife were able to trap and remove the animal before anyone got injured. And I'm just going to throw it in there, I'm sure - I'm sure the alligator, crocodile, whatever is also OK.

But, Sara, seriously.

SIDNER: I love them.

BOLDUAN: Only in Florida, baby.

SIDNER: You know, they teach you to run in a zig zag to get away from them. When you're kids you learn that in Florida, you know? You got to run in a zig zag because they can't whip their tails around. I - I swear.

BOLDUAN: It's not Friday, so I'm not going to ask you to - to show us. But if it was Friday, I would be - I would ask you to show us.

OK, we got to keep moving. We got to keep moving. We got to keep moving.

SIDNER: All right, thanks, Kate.

BOLDUAN: We got to keep moving.

SIDNER: All right. All right, this week the Trump administration announced a series of sweeping, rapid fire moves aimed at gutting major Biden era U.S. climate policies.

Listen.

(BEGIN VIDEO CLIP)

LEE ZELDIN, ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY: The Environmental Protection Agency is initiating 31 historic actions to fulfill President Trump's promise to unleash American energy, revitalize our auto industry, restore the rule of law, and give power back to the states.

(END VIDEO CLIP)

[08:59:59] SIDNER: All right, CNN chief climate correspondent Bill Weir joining us now.

Walk us through what the Trump administration is planning on doing here, or has already said it is going...