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Markets Open After Worst Week; Gerald Neal is Interviewed about Tariffs; March Madness Brackets Set. Aired 9:30-10a ET

Aired March 17, 2025 - 09:30   ET

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

[09:30:00]

DR. JUDD WALSON, CHAIRMAN, INTERNATIONAL HEALTH DEPARTMENT AT JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH: Johns Hopkins but maybe most importantly to the many communities and many, many individuals around the world who have now lost access to health care or are having trouble accessing commodities, like drugs and medicines. And that's really the - the really tragic crisis that we're talking about when we talk about these cuts.

SARA SIDNER, CNN ANCHOR: Do you get the sense that the public as a whole have any true idea of just how impactful USAID grants and monies are, not just to people around the rest of the world, but actually to Americans?

WALSON: I think it's very hard to understand the full scope of the impacts that this will have, not only on people all around the world, but also right here in our own country. As you mentioned, we had many people who were laid off as a result of these cuts. Many of those jobs, over 200 of those jobs, were right here in the United States.

In addition, a lot of the work that we do supports efforts here in the United States. For example, one of our major tuberculosis awards, which was funding work in tuberculosis around the world, was actually using some of those funds to fund innovation right here in America, funding tech companies to take tech transfer from drugs and medicines and vaccine manufacturers that are making vaccines for Covid and other diseases and using those funds to actually repurpose those to work on diseases like tuberculosis.

SIDNER: The long-term effects of all this is sort of hard to quantify. Do you have some sense of what that might mean over - over the long term with basically USAID being demolished?

WALSON: Yes, I think it's really important that we understand the full scope of this. This will be measured in millions of lives lost. There are a number of estimates now being produced that suggest that this year alone we will see hundreds of thousands of deaths that will be impacted by this. And over the course of the next few years, it is likely to be millions of deaths. And that's not even speaking about livelihoods.

As we see degradation of health systems around the world as a result and as a consequence of these - of these withdrawals, we are going to see people having trouble accessing health care, we're going to see people's health diminish. And when health diminishes, economies diminish. And as economies diminish, then we see political instability. So, it is very, very likely, and I think it's almost inevitable at this point, that the direct results of these cuts to USAID are going to make us less healthier, they're going to make us less safe, both around the world, but also right here in the United States.

SIDNER: I got to tell you, I'm shocked to hear the word millions of lives lost due to these cuts. How so? What would be some of the things - I noticed there was something, for example, you know, a program to try to prevent HIV transmission. Are you talking about that sort of health care that has been funded by USAID?

WALSON: Yes, I think there's a number of ways in which this will impact all of our health. The first are the direct cuts to projects and programs, like the ones you're speaking about, where medications that were being delivered to individuals with really important, life threatening diseases are now not available, where health care workers to deliver those medications are no longer available. And so those individuals are likely to suffer the consequences.

But in addition, many of the health systems around the world, in terms of both clinical facilities and public health infrastructure, has all been supported through USAID, including the training of all the individuals or many of the individuals involved in public health work and in clinical work around the world, including the development of policies, the infrastructure for laboratories and hospital care. All of that is now going to start to degrade. And as we see the degradation of the infrastructure, then, obviously, many, many other - many other people will be impacted directly.

And then finally, a lot of USAID work supported not only the actual infrastructure on the ground that we rely on to deliver care in other countries, but many of the data systems and information systems that we rely on to understand what's happening with disease around the world were supported by USAID and their efforts. And as a result, we are now essentially blind to many things that are happening around the world in terms of disease outbreaks, our ability to then respond and contain those outbreaks.

So, the threat is real. And the threats not only to the many individuals, the mothers and children who we work with on a day to day basis all over the world, but the threat is also to us because we are only one airplane - one airplane ride away from a disease entering our borders, and we rely on those systems to be able to detect and respond to emerging disease threats in real time. And we've essentially just been blinded. And I think this will have very significant long-term consequences.

[09:35:04]

SIDNER: We all just lived through a pandemic. So, you saying the - the one plane ride away is very salient and people understand that for sure.

Doctor Judd Walson, thank you so much for - for really explaining the impact this is having on the health care community. Appreciate it. And the rest of the world.

All right, President Trump -

WALSON: Thank you, Sara.

SIDNER: President Trump is doubling down, vowing that reciprocal tariffs will go into effect next month with no exemptions on steel and aluminum. Why he's calling it a liberating day for the country.

And after nine months stuck in space - we're enjoying it, it depends - two NASA astronauts are now set to finally return home tomorrow. We have the very latest details on their long awaited return.

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[09:40:12]

JOHN BERMAN, CNN ANCHOR: All right, the markets opened just a few minutes ago. You're getting a live look at where they're headed. A little bit up this morning, which is welcome news given sort of the white-knuckle period that everyone is in watching these violent swings in the market, way down over the course of the last few weeks.

Let's get right to CNN's Vanessa Yurkevich for where things stand this morning.

Green.

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Green. We like green better than red.

BERMAN: Yes.

YURKEVICH: But, obviously, last week was a very bad week for Wall Street. It really - we're on pace right now to see one of the worst months on Wall Street in nearly two to three years.

But these numbers look good. And this might be because of retail sales this morning. They were not great, but they were not terrible. Retail sales came in at 0.2 percent. The expectation was 0.7 percent. So, slower spending than was anticipated, but not in the red, which is where we saw January's numbers revised to, down from 0.9 percent, down to 1.2 percent. That's traditional, though, in January. People pull back a little bit because of the holiday spending.

But ultimately what this shows is consumers are pulling back. And, of course, the question is, is that because of prices going up, is that because of fears of inflation, of this trade war. So, markets pricing in an OK report. Not exactly where economists thought it would be. But ultimately, we heard from President Trump over the weekend who really doubled down, tripled down on tariffs that are coming on April 2nd.

Take a listen to what he said on Sunday.

(BEGIN VIDEO CLIP) DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It's going to be reciprocal. In other words, whatever they're charging, we're charging. Very simple. If they're charging us, we're charging them. Then in addition to that, on autos, on steel, on aluminum, we're going to have some additional tariffs.

(END VIDEO CLIP)

YURKEVICH: So, you heard President Trump there essentially saying that this trade war is going to escalate even further. And if you take a look behind you, these are a lot of numbers, obviously. But what I would just point out is, red, bad, green, good. You have more investors - this is an investor survey about sentiment, how they are feeling about the economy right now. You can see the last couple of weeks there. The numbers, not great, above 50 percent. More than 50 percent of investors believe that the market is heading in a bad direction. A bear market.

And for folks at home, that just indicates that people on Wall Street are still feeling very jittery about what's going on right now. And that has been reflected in the markets for the past couple weeks.

BERMAN: Big turn. You can see a big turn right there at the end of February there.

YURKEVICH: Yes.

BERMAN: Those were the president's tariff moves right there. That's a (INAUDIBLE) shift.

YURKEVICH: Right into effect there.

BERMAN: All right, Vanessa Yurkevich, thank you very much.

Sara.

SIDNER: All right, one of the economic juggernauts for one state is now under major threat due to President Trump's trade war.

Joining me now is Democratic State Senator Gerald Neal.

You are from Kentucky, born and bred. You are now dealing with the fallout of this trade war that is currently underway. So, here's what I know about Kentucky, Senator. Famous for four things, the Kentucky Wildcats, Kentucky Fried Chicken, the Kentucky Derby, and Kentucky bourbon. So, how big of an industry is bourbon, and alcohol in general, in Kentucky?

GERALD NEAL (D), KENTUCKY STATE SENATOR: Well, first of all, thank you for having me.

It is huge. There's no question about that. Kentucky produces about 95 percent of the world's bourbon. Arguably, this is the most directly affected industry by tariffs. So, it's a big deal here.

SIDNER: Look, Canada responded even before the tariffs were put in place. Canadians started taking American alcohol off their shelves. And I was hearing that that was actually having an impact before the tariffs went into place. And now the tariffs are in place and there is this big response. How much has that hurt your state?

NEAL: Well, you have to look at it this way, I think. I mean, I think, in - currently we're receiving, I guess, about an income overall of about $9 billion annually. Now, that's - that's huge. But what a lot of folks may not recognize is that it not only affects those who are actually producing this, but it also takes a toll otherwise.

For instance, it takes a toll on shipping. It requires the use of trucking, for instance. A bourbon is a premium product in bars. It's a - if people are not coming on tourism, they don't have that particular aspect. It has a press down on tourism. Byproducts like grains are a key in terms of farming. And that, of course, is going to have - hurt the farmers. I could go on and on and on with it. The problem and the issue that I'm trying to raise is that it's not just that bottle of bourbon, it's all that it takes to make that bottle of bourbon, to get it to where it needs to go, et cetera and everybody that touches it in between, including bottlers and distributors and you name it, everybody gets affected. It's a big deal in Kentucky.

[09:45:11]

SIDNER: So, I guess the next obvious question is, the whole of Europe is now saying that they are going to put a 50 percent tariff on U.S. alcohol after Trump first put tariffs on other things, and that was their response. And now Trump is responding that they're going to - he's going to put a 200 percent tariff on, you know, France and some of its alcohol.

I mean, what is your greatest concern with the trade war that is now underway, started by our president, and what it means to your state going forward?

NEAL: Well, it means quite a bit. Obviously. The - what we have here is a situation where our industry, and I've already pointed out all the people who will be affected by it, but some will not be affected to great extent. It has variable effects.

For instance, if you're an independent person that does not deal with the international market, it may have less effect or no effect, quite frankly. But those who are tied into the international market, Canada, Europe, other aspects of the market, particularly those two, you're going to - some independents who are trying to do business in the international markets that are doing business, I'm talking about small ones, are going to have a significant adverse effect.

SIDNER: Right. Layoffs, do you think, are going to happen, or are already happening?

NEAL: Well, I know that it's hard to discern exactly what's happening with respect to layoffs because it may be in the long term planning for us. For instance, Brown-Forman just actually laid off about, I guess, about 700 individuals, but I think it might have been related to the long term planning. I don't know how this is factored into that.

But I will tell you this, that if, in fact, these tariffs have the effect that they've already demonstrated, you know, the first time around it had to press down, I think it's going to happen again this time, I think it's obvious, then there will be layoffs. There's no question.

SIDNER: State Senator Gerald Neal, I do appreciate you getting up early for us this morning and coming on. I know you got a lot of work to do there in the state of Kentucky. Really appreciate it.

NEAL: Well, thank you very much. I'm glad to be here.

SIDNER: All right, John.

BERMAN: Look, Kentucky, a place that knows a little bit about March Madness. It is here. We will tell you what you need to know to win your bracket.

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[09:52:03]

BERMAN: All right, this morning, the madness is here. It is official, March Madness. The brackets set on both the men's and women's side. First up tomorrow on the men's side, Saint Francis will face Alabama State. North Carolina will go up against San Diego State. Pretty crazy to see North Carolina basically in the play in game. The first four games.

With me now to discuss, CNN contributor Cari Champion.

Let's talk about the men first.

CARI CHAMPION, CNN CONTRIBUTOR: Yes.

BERMAN: The number one seeds. Yes, Duke. Yes, Houston. Yes, Florida. Yes, Auburn. Some of the usual there.

CHAMPION: You're over it. You're over it. Yes.

BERMAN: What are the stories you're looking for?

CHAMPION: You know, the story lines actually are pretty interesting. I look at Auburn, and even though they're the number one seed, here's a couple of questions about what we're going to see in the college football landscape. The average player on that team is about 22, 23 years old.

BERMAN: Ancient.

CHAMPION: In college years, yes. And so people are complaining about, wait a second, you can keep these players in forever and they can play as a mini pro against these teenagers? They're already built. They understand the system. It's not fair. The other story line that I'm really interested in is right here,

because I do live in New York City. Let's talk about Saint Johns for a minute. Rick Pitino, he owns the city. How - his career has had so many highs and so many lows. And look where we are right now. Watching him in the tournament. And looking - as a two seed, I'm like, congratulations.

BERMAN: I mean, first of all, everyone in this studio, almost everyone, big Saint Johns fans. There's been a lot of Saint Johns -

CHAMPION: OK.

BERMAN: Yes, you can hear it right there.

CHAMPION: OK. OK. OK.

BERMAN: Not Sara. Not Sara. We'll get to Florida in a second.

CHAMPION: OK.

SIDNER: Well, you say everyone.

BERMAN: Sara's complaining.

SIDNER: What do you mean?

BERMAN: But Rick Pitino, man, a long way.

CHAMPION: A long way. I said once, you know, considered one of the best. Had a little trouble. Some controversy. Came back. I mean every - and every coach in this day and age has had that now that we've changed the rules. But we'll see. His story is really interesting. And if Saint Johns goes all the way, I'd be happy to see that. That'd be nice.

BERMAN: Although they may end up playing Florida, which Sara is obsessed with early on.

CHAMPION: OK. So, that will happen. Yes.

BERMAN: Talk to me about the women's side. That's where we may see some of the best action.

CHAMPION: We are going to see some of the best action there. As we all know, everyone loves women's sports. I'm going to be honest with you, and I - and I'm going to say this to you because -

BERMAN: I only want honesty.

CHAMPION: Because we're good friends. I went to UCLA and they're the number one overall pick. So, I am a bit biased in my choice. I think they'll win it all, though.

Here's the problem with this bracket. If you look at the women's bracket, all of the great teams, the number ones will eventually play other great teams that are like one a, one b in terms of how great they are early on. So, you might - we might get a situation where UCLA plays USC for a fourth time, and that's not going to give us the best basketball, because these players know each other so well. And so we'll probably see a lot of uncomfortable play. But we see - we'll see how it all washes out in the end, you know what I mean?

BERMAN: Cannot wait to see some of these games.

SIDNER: I have a question.

CHAMPION: Yes.

SIDNER: I have a question. I have arrived here to talk a little bit about basketball, particularly Florida.

BERMAN: Yes.

SIDNER: Who is the number one seed? I just wanted to -

CHAMPION: OK. OK, so, you - you clearly are going for Florida, correct? I understand.

SIDNER: But who - who is the number one seed in the March Madness -

CHAMPION: I mean - Florida is there. They are four.

SIDNER: Thank you.

CHAMPION: Yes, so they are four.

SIDNER: I just -

CHAMPION: But so - we'll say. But the overall number one on the men's side is Auburn.

BERMAN: Auburn.

CHAMPION: So, but it still doesn't matter.

[09:55:00]

You guys will do well. I feel good about it. I -

SIDNER: Todd Golden, I need you to bring it home.

CHAMPION: OK. Speak to the people.

SIDNER: This is what I'm saying. I'm speaking directly to him.

CHAMPION: OK.

SIDNER: I need him to bring it home.

CHAMPION: What about you, John? Who you got?

SIDNER: It doesn't matter.

BERMAN: I haven't filled it out yet. I mean, I keep waiting for a West Coast team to win again, you know.

CHAMPION: Yes.

BERMAN: So, but I don't think it's ever going to happen.

CHAMPION: I -

SIDNER: You're not even from the West Coast. What are you talking about?

CHAMPION: I -

SIDNER: You go for Florida.

BERMAN: They haven't won forever.

CHAMPION: So, that's why he wants to see it. I'm actually one of - in favor of a traditional blueblood. I might see - if we see Duke win it, I'd like to see that again. And I know that sounds -

SIDNER: You would?

CHAMPION: Just a little calm to a world that's so crazy.

SIDNER: Oh, uh-uh. No.

BERMAN: Kind of said so no one ever. No one ever said they want Duke to win.

CHAMPION: Oh, no. No - no one. This is going to be unpopular. Unpopular opinion.

SIDNER: Come on, Cari. Anyone to UCLA, they're calling. By the way, the phone's ringing. They're revoking all of the things.

CHAMPION: They were - all my things. All my things. Only on the men's side. Only on the men's side. Y'all forgive me.

SIDNER: To be fair.

CHAMPION: Yes.

BERMAN: Cari, always great to see you. Thanks so much.

CHAMPION: OK.

SIDNER: All right, and thank you for joining us. This is CNN NEWS CENTRAL. "The SITUATION ROOM," up next.

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