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Markets Open after Tariff Announcement; HHS To Cut 10,000 Full- Time Employees; CNN Original Series on Lance Armstrong. Aired 9:30-10a ET

Aired March 27, 2025 - 09:30   ET

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

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[09:30:25]

JOHN BERMAN, CNN ANCHOR: All right, that is the opening bell on Wall Street. And now that's when the markets just opened. Right then and there. We are watching how they react to the announcement from President Trump of these new 25 percent tariffs across the board on imported cars and, importantly, car parts. You can see the Dow dropping at the open here.

Let's get right to CNN's Matt Egan for what you've been hearing about what investors think of these moves.

MATT EGAN, CNN REPORTER: Yes, John. Well, we're seeing markets open lower, although not dramatically lower. I think this is actually a relatively subdued reaction from Wall Street. We did see auto stocks take a hit yesterday when the White House announced that these tariffs were coming. You see they're all in the red right now, the big three, GM, Ford and Stellantis, led by a 7 percent drop for GM, Honda, Toyota, also in the red. Keep in mind, all of these auto stocks, they fell yesterday as well.

It's interesting that the losses are not even more significant in the auto sector because really this announcement of tariffs sending shockwaves across the industry. I think that's - there's two reasons. One, its auto stocks were already beaten down ahead of this because investors were bracing for trouble. Two, there's some skepticism that the tariffs that have been announced will actually kick in. I talked to veteran analyst Dan Ives before, and he said investors are not really freaking out because they don't really believe it's going to happen. He said, if it actually happens like this, it would be Armageddon for the global auto industry.

The problem, John, as you know, is, the North American auto industry, they treat the continent like its one country, not three. You see parts move freely over the border, multiple times sometimes, for free, right? The free trade agreement. This has been built up for years, decades. And it's not really clear, how do you kind of unscramble that egg? I mean, the interconnections are just so tight. And we also have heard from other analysts who said that - this is from Cox automotive analyst - economist, who said that if these tariffs kick in next week, that it would be doomsday for the industry. BERMAN: I got to say, there's two things that are fascinating about

that. Number one, the scale at which they think this could be problematic. But, number two, the fact that people don't really believe it because the president has backed off so many times over the last month or so, negotiating effectively with himself in a way.

EGAN: Yes, that's just part of the uncertainty here, right? The president announces something, he often dials it back, but sometimes he doesn't, and then he'll escalate elsewhere. It's really hard to make sense of it all.

BERMAN: The other fascinating dynamic has to do with Canada, which is that - and this is a President Trump created phenomenon. Canada is now an adversarial partner here, and they're in the middle of an election. So, one would think, they're going to fight this hard.

EGAN: Yes, absolutely. Look, there's been a number of concerns in the market and among economists and consumers coming into this week, right? Obviously, uncertainty is very high. We have inflation that seems to be kind of stuck uncomfortably high. Confidence is low. And it's really hard to see how this auto tariff announcement helps any of that. In fact, it probably makes all of it worse, in part because of the point that you just raised, which is retaliation, right? This move is so massive that it is almost a slam dunk that other countries, including Canada, are going to have to retaliate by putting steeper tariffs on items that are made in America. And, of course, that just adds to the uncertainty and potentially slows down growth, hurts the jobs market, hurts inflation. There's a lot here.

BERMAN: All right, watching it closely. Matt Egan thank you very much.

EGAN: Thank you.

BERMAN: All right, there is breaking news.

The Department of Health and Human Services, we just learned, is going to announce huge jobs cuts today. Some 10,000 jobs. Scrambling to get some details about where exactly these jobs will come from.

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[09:39:07]

BERMAN: All right, we do have breaking news this morning.

We're just learning that Health and Human Services Secretary Robert Kennedy will announce big, big layoffs at HHS. Some 10,000 employees. They say it's a restructuring of 28 divisions to 15 new divisions.

With us, Republican strategist Matt Gorman. Also with us, the chair of the New York State Democratic Committee, Christine Quinn.

Christine, what do you think of this? We need to get more information about where the job cuts are going to be specifically, but the idea of cuts of this size. CHRISTINE QUINN, EXECUTIVE COMMITTEE CHAIR, NEW YORK STATE DEMOCRATIC

COMMITTEE: I mean is there waste in this department? Is there - are there cuts that could be sustained? Of course. But this sounds enormous. And they could become cuts to important public health programs that really keep Americans safe and healthy. And also, these could go to deep cuts to administering benefits and other things to low income Americans who really rely on the - on HHS for their health and physical safety.

[09:40:06]

KATE BOLDUAN, CNN ANCHOR: Matt, do you think this is one of those areas that - that's going to come back to bite this administration? Because when it comes to the CDC, we've got a measles outbreak that continues and is getting worse. I mean there is a - there is a lot that can be more efficient in the federal government. But when it comes to America's public health agencies, I think there's just like a high fear factor on the long tail of fallout and negative impact that could have.

MATT GORMAN, REPUBLICAN STRATEGIST: Sure. I hear your point. I think there are still 62,000 HHS employees after this cutoff. And so, for perspective, that's the size of the capital city of Nevada, Carson City. That's the population of that. So, it's not like they're dealing with, you know, 10 people sitting around a table suddenly. So, that's number one.

And I think, look, I think most of the people in the private sector, all of our organizations here, we all understand what restructuring means. We understand layoffs. Government jobs aren't lifetime contracts. And it's not pleasant. It's never something we take pleasure in. But people in the private sector understand that. And I think that's why you're kind of going to see from some of this reaction.

BERMAN: Again, we will see where exactly these jobs come from. I just want to note one last thing. Robert Kennedy Jr., this comes at a time, when you're talking about the measles outbreak -

BOLDUAN: Right.

BERMAN: Doctors are reporting high levels of vitamin a toxicity, right, because -

BOLDUAN: Yes, because that's what he's been pushing.

BERMAN: So - so, there's going to be a trust factor, whether they're making the cuts in the right places.

But I want to talk about tariffs too, because out of the corner of my eye, on one of the giant screens in here, I was looking at what's happening to auto stocks. And they're dropping, right. The announcement of some 25 percent tariffs on cars and car parts here. This is part of what President Trump's agenda has been. It's also part of the, I'm going to announce tariffs, then I'm going to back off these tariffs, then I'm going to announce tariffs, then I'm going to back off them again.

Do you feel like - the timing yesterday is what got me. He announced these new tariffs, which don't take place until next week, at a time when it seemed like he was trying to take focus away from the Signal - the chat story.

QUINN: Yes. I mean there is no question, right? He could have announced these next week, any day between now and then. He loves tariffs, so you think he would have tried to make it the story of the day. Instead, he put it out there to try to distract Americans, create concern about the uncertainty in the markets. The markets have already opened down. We're seeing GM's stock down about 7 percent already. This was a classic, political move to try to distract the voters and distract the press.

BOLDUAN: In terms of - but add the - add this distraction, add this - well, quickly, could we put that back up -

BERMAN: I was just looking - I'm sorry, I was not - I'm sorry, I just saw the GM stock down over 8 - you know, around 8 percent. That's a lot.

BOLDUAN: So, you add that into the other economic data that we've had just this week. Consumer sentiment is down to a point that we haven't seen since January of 2021, Matt. We just had Mark Zandi on, and he said, "I've been - I've been a professional economist for 35 years. There are few other times in that 35 years where the uncertainty is as thick as it is today." He compared it maybe - maybe to 9/11 or the global financial crisis or the pandemic. But his point is, the uncertainty, which we know is not a good thing, he says - I mean it sounds terrifying when you put it into - into that category of uncertainty. This is a problem for this administration.

GORMAN: Yes, I mean, look, and there's some good numbers in there. Obviously, inflation is down. Gas prices are down. But what I - my advice would be is, don't fall into the trap that Democrats did with inflation. And what - what they found themselves doing was trying to get to next week - the next week so they come up with excuse after excuse. So, tell a story about what you're trying to do in a - in an arc. And I think what I would expect to hear, and I would hope to hear from kind of the administration is, talk about how, with a lot of these tariffs, it's about getting capital to refinance a lot of that Biden era spending that was done at very high interest rates and being able to pay that down and do it quickly will allow us to budget easier. Tell a broader story. And I think - I think your point's well taken. I think getting off that Signal story as extremely helpful. And so this announcement probably pushed some of that out.

BOLDUAN: Are we off it?

BERMAN: Well, no, that's a great point.

But, see, the - a - and I'm glad you said. I mean it just seems like maybe that was part of the effort here because a talking point that I think is deliberate this morning among some Republicans close to the White House is, you know, move on. You guys all have to move past this. It's all over. Likely, Matt?

GORMAN: Well, I mean, the way to move past it is to, frankly, move past it, right? Like I think, you know, obviously a mistake was made period, right? I think Goldberg also did some things. But, again, the more you - we talk about it, the more we get in the weeds on it, the more it becomes, you know, dominating shows like this And it's (ph) more interested in the newspaper. I think moving off this story helps the administration, gets them on to something they want to talk about.

QUINN: But you know what no one - people who aren't getting helped by any of this are the American public.

[09:45:01]

Now their faith is probably eroded in our defense secretary. They're worried about how the highest-ranking people, the vice president, how they're handling sensitive information about attacks on enemies, and at the same time they're going to get hurt worse in their pocketbook. They're not only going to have to pay more if they buy a car, if they try to stretch out their car with 100,000 miles to 150,000 miles, the parts are going to cost more. This isn't a story. It's not a game. It's real life for Americans. And the stock market is showing that in a way that's going to hurt Americans.

BOLDUAN: Real quick, Matt, just from a communications perspective, and your advice on this, the last - are we at 20 - 48 hours since we really - the Signal leak came out. Do you understand, from a communications standpoint, how that evolving explanation attempt played out from the administration?

GORMAN: Look, I - clearly - clearly a mistake was made, right? Whether it was Mike Waltz to somebody who was added this chat that shouldn't have been, period. Getting all that out as quickly as possible is the most helpful thing. If there are inaccuracies in the story, which there were a few, point that out too. But I think moving on from that, getting it all out as quickly as possible, just helps you in the long run.

QUINN: Why are they on Signal? Aren't confidential, sensitive things on confidential central systems? This isn't a bunch of, you know, friends having a chit chat about where they're going to go for dinner. These were, you know, plans of the Department of Defense to launch an attack.

BOLDUAN: Yes, they were.

BERMAN: They - which is - which is why people are still discussing it.

BOLDUAN: Yes, exactly.

BERMAN: Christine Quinn, Matt Gorman, thank you very, very much.

BOLDUAN: Thanks, guys.

BERMAN: All right, breaking this morning, the FBI announces the arrest of an alleged leader - a key leader of the MS-13 gang. (COMMERCIAL BREAK)

[09:51:24]

BERMAN: All right, a new episode of "UNITED STATES OF SCANDAL WITH JAKE TAPPER" focuses on the story that shocked fans of fair play and honesty everywhere. Lance Armstrong has survived cancer. He kept on winning as a cyclist. He was a role model to many. But he faced accusations of doping, which he denied vigorously, vehemently, aggressively for a time.

With us now, CNN sports anchor Coy Wire.

Listen, I covered the steroid scandal, doping and stuff, for years and years. The arc of this one was particularly fascinating with the denials and more, Coy.

COY WIRE, CNN SPORTS ANCHOR: Yes, and the fact that we later learned that a lot of his teammates knew that this was going on.

And we've seen this in all walks of life, right, sports, politics, John, where people turn a blind eye, keep quiet, they play dumb, maybe even cover up for the people who either they care for or who are in a position to help them along on their paths.

Lance Armstrong, he had become this larger than life figure, right? He was what every cyclist wanted to be. And if he was doping, using banned substances, maybe that's just the way things were at this level. Heck, maybe they should be doing it too. Former teammates eventually admitted to doping, saying Armstrong encouraged them to do it.

And, John, you'd have to imagine there was probably this sort of moral juxtaposition as well, right? With the bad came a lot of good. Armstrong's Livestrong, his foundation which he created back in 1997 after beating cancer, supported cancer patients and survivors. Millions of lives were touched. The foundation raised hundreds of millions of dollars for cancer related causes. And those close to him were probably thinking a lot to themselves, who am I to rat out this larger than life legend?

Here's a sneak peek at this incredible story and just how massive Lance Armstrong had become.

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JAKE TAPPER, CNN CORRESPONDENT (voice over): During his winning streak, though some insiders may have known Lance Armstrong was reliant on performance enhancing drugs, to most of the world he was simply one of the greatest athletes of all time. And suddenly Lance was moving in a-list circles and even dating superstar Sheryl Crow.

UNIDENTIFIED MALE: He was on a whole different level as a celebrity but also financially in how much he was paid. Probably the best cyclist at the time were making maybe a million dollars a year. I was making, I think, $60,000 or something. And he was probably making tens of millions of dollars, or somewhere in that neighborhood.

TAPPER: Mainly from sponsorships, right?

UNIDENTIFIED MALE: Yes, just -

TAPPER: From Nike or whatever.

UNIDENTIFIED MALE: Right. He had big corporate sponsors.

UNIDENTIFIED MALE: From Trek bikes to Nike shoes to Nike cycling gear. RadioShack had sponsored him at one point. So, he was just a juggernaut. And so, once this story took off, it was almost too big to fail.

(END VIDEO CLIP)

WIRE: Now, John, this man, Lance Armstrong, we're talking rock star status, right? Those fans around the world, those massive endorsements, you heard a bit about their massive net worth,

In 2004 he made the Forbes highest paid athletes list. He was number 24, just behind NBA, NFL, Nascar, Hall of Famers Allen Iverson, Champ Bailey, Jeff Gordon. He was ahead of a young worldwide soccer star, Ronaldo, at the time. He was taking the sports world by storm. And then, of course, came the fall. And we'll have the whole roller coaster story right here this weekend on CNN.

BERMAN: Yes, again, and the part of it that I remember so well, and not fondly, is how aggressive he was about people who made the accusations that he had been doping. Now, you know, true accusations. How he was attack, attack, attack, deny, deny, deny for so long and so vehemently.

BOLDUAN: And also the - we learned after the fact, the lengths to which he went to continue this for so long, this farce -

[09:55:08]

BERMAN: Yes.

BOLDUAN: For so long. I mean that's one thing that, like, I've never forgotten.

Yes, I mean, just, Coy, you know, as an athlete, I just wonder how you felt seeing someone do that, talk about it the way he did.

WIRE: Yes. I spent nine years in the NFL, John, and I can say, as true as I sit here now, I never heard one teammate in those nine seasons in the NFL, a whole bunch of different teammates in those locker rooms, never heard any - anyone cheating, right? And so, then when you see these people who reach that larger than life status and you're in awe of them, and you know what it takes as an elite athlete to get to that level, you can imagine it because you're not at that level.

And then when you find out they took the shortcut, I mean, that just rips your heart out as someone who's rooting for someone like that, and then they go ahead and just rip the rug right out from underneath you.

BERMAN: Coy Wire, always great to talk to you. Thank you so much for your perspective.

This new episode of "UNITED STATES OF SCANDAL WITH JAKE TAPPER," airs Sunday night at 9:00 Eastern and Pacific, right here on CNN.

BOLDUAN: Thank you so much for joining us today, everyone. This is CNN NEWS CENTRAL. "THE SITUATION ROOM" is up next.

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