Return to Transcripts main page

CNN News Central

U.S. Futures Rise After Days of Losses Over Trump's Tariffs; Trump's Reciprocal Tariffs Set to Take Effect at Midnight; Florida Gators Win NCAA Championship; Trump Administration in Early Stages of Planning Military Parade. Aired 8-8:30a ET

Aired April 08, 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]

(BEGIN VIDEOTAPE)

NICK WATT, CNN CORRESPONDENT (voice-over): ... U.S. AG Pam Bondi, a Trump loyalist.

PAM BONDI, ATTORNEY GENERAL: The president is going to comply with the law.

WATT (voice-over): If not, then what?

UNIDENTIFIED MALE: There's no playbook anymore. We say, well, I would hope Congress would step in. Well, Congress isn't going to step in.

WATT: Do you see yourself as, in any sense, the resistance to the Trump administration?

ROB BONTA, CALIFORNIA ATTORNEY GENERAL: I don't like the word resistance if I don't use it. I see it as continuing on our path of progress, not resisting anything.

We have decided we will never have a king. And so his potential view that he wants to consolidate more power in the executive branch that the Constitution does not give to him is a problem.

(END VIDEOTAPE)

KATE BOLDUAN, CNN ANCHOR: China pushing back, now saying it is ready to fight to the end as President Trump threatens to impose an additional 50 percent tariff on Chinese goods, tariffs that are set to take effect tonight.

And high-level talks between Iran and the United States. If they are direct talks, that would be the first time in 10 years. How Iran is responding to Donald Trump's announcement now. And then we go to San Antonio.

SARA SIDNER, CNN ANCHOR: Where this morning it is great to be a Florida Gator. Yes, we're going to bring you the highlights from an amazing and terrifying game that was played right here in San Antonio. We are outside the Alamo with all of your highlights. JOHN BERMAN, CNN ANCHOR: We are standing by for the opening bell on Wall Street and take a look at stock futures at this moment. They are pointing up pretty sharply. This would be a big open and it comes after the like the spinning losses over the last few days.

And it seems to be based on comments from administration officials over the last 24 hours, relenting on their no negotiations over tariffs pledge. Asia markets on those comments showing some signs of a rebound as well.

Now one outlier is China. There is new tough talk between China and the United States. China is vowing to retaliate if President Trump follows through on his threat today to impose an extra 50 percent tariff on the country. And then just last hour, the U.S. Treasury Secretary said China never should have tried to slug it out with the U.S.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, TREASURY SECRETARY: I think it was a big mistake, this Chinese escalation, you know, because they're playing with a pair of twos. Traditionally, If you look if you look at the history of the trade negotiations, we are the deficit country. So what do we lose by the Chinese raising tariffs on us? We export one fifth to them of what they export to us. So that that is a losing hand for them.

(END VIDEO CLIP)

BERMAN: All right. With us now is Colby Smith, the Federal Reserve correspondent for The New York Times. We can see stock futures going up.

And I know it's hard to chase the markets trying to chase the trade policy of this administration. But at least right now, an hour and a half before the open, investors see something like a hell of a lot more than they've seen over the last few days. What is it?

COLBY SMITH, FEDERAL RESERVE AND U.S. ECONOMY CORRESPONDENT, NEW YORK TIMES: No, absolutely. I mean, any sign that these tariffs are going to be de-escalated in any way, shape or form is going to do quite a lot to help investor confidence. I think the problem is that no one knows if that's going to be the case.

No one knows if there really are going to be these negotiations, when they're going to come to pass, if they're going to be, you know, confirmed and then suddenly rolled back. And I think that's leading to a lot of the angst. So there's it's -- I think investors are struggling to get a sense of what is going to be the long term picture. And that is how you have a stock market rally that sustains.

BERMAN: They're struggling, but also clinging, I think, to each bit of positive news, which seems to be what's driving this today. And a comment from inside the White House -- wasn't the chair of the Council of Economic Advisers, who acknowledged there are conflicting messages from White House advisers. SMITH: Absolutely. He said that, you know, there are different signals here, which is not the kind of message that you want in an administration who's rolling out one of the biggest kind of resets of trade policy that we've seen ever in the modern era. And so I think that's what's really making investors angsty here.

And it's not even just in the stock market. I mean, we saw this in government bond markets yesterday. And I think that was the big, I would say, the signal and red flag, frankly, was the fact that you saw yields rise sharply at a time when stocks were selling off.

[08:05:00]

Some people are saying, you know, that's investors having to sell off their holdings to cover losses or they're starting to rethink, you know, their confidence in U.S. markets and institutions. I mean, it's a lot to unpack there.

BERMAN: It is the word capitulation coming into play in some cases here. Now, China -- what's happening between the U.S. and China seems to be happening on a whole different plane from the rest of the world. There's no talk of relenting on any of these tariffs with China right now. In fact, it's escalating in the same thing from China, which really seems to be leaning in and gearing up for an extended fight.

SMITH: I mean, they're kind of left with with in some ways no choice. And I think that's how their their perspective is to say we have these significant tariffs that are being implemented on us. And in order for us to, you know, protect our domestic industries, this is what we have to do here.

Of course, the Trump administration, they were saying, don't retaliate. We will try to find kind of solutions here. But no one knows whether to believe that to be true or not.

And it's hard to kind of navigate a situation where you have the two biggest economies going head to head in terms of the economic outlook, that that's what's making people quite anxious at the moment.

BERMAN: And midnight is when this all begins to happen. All right, great to see you again. Thank you so much for trying to help us understand what's going on. It's a challenge -- Kate.

KATE BOLDUAN, CNN ANCHOR: Let's continue that effort. Trying to understand it. Joining us right now is Ernie Tedeschi, the director of economics at the Yale Budget Lab, also a former chief economist for the Biden administration. Thank you so much for coming in.

Let's jump off what they were just talking about, which is when there are conflicting messages coming from all of the folks around a president, the one voice that matters is the voice of the president. And on this question still of are these tariffs permanent or is it a negotiating position?

I want to play for you what the president said just yesterday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There's been some mixed messages from your administration. You're talking about negotiations and yet others in your administration are saying that these tariffs are actually permanent. What is the actually?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, it could be. They can both be true. There can be permanent tariffs and there can also be negotiations because there are things that we need beyond tariffs.

(END VIDEO CLIP)

BOLDUAN: Does that make sense to you?

ERNIE TEDESCHI, DIRECTOR OF ECONOMICS, YALE BUDGET LAB: I mean, so when we have analyzed the tariffs, we have been treating them as permanent, as a new fixture of American trade policy. So if they stayed in place, if everything that's been announced in 2025 so far were to stay in place for the entire year and be fully implemented, that would raise prices by between two and two and a half percent. And, you know, if you're an average family of four, that translates to about thirty eight hundred dollars less in purchasing power for you over the year.

If those tariffs stayed in place, that would shave about a point off of our GDP growth, which probably doesn't sound like a lot. But, you know, economists right now, when they hear that, they shake in their boots because they know that that means losing about $300 billion in economic value when you take off that point. So so the stakes are high about what he means there.

BOLDUAN: As an economist, is it smarter math to assume that and operate under the assumption that these tariffs are permanent until someone actually presents a solidified deal over a negotiation? Or can you operate on the hope that if they say there's a negotiation happening, you assume a negotiated -- a negotiation is happening?

TEDESCHI: Yes, I mean, look, no, -- I mean, no tax is great when it comes to economic growth. We impose taxes because we want to pay for things that we think are worthwhile. But but tariffs are a particularly economically inefficient type of tax.

But I think that that doesn't explain the market gyrations and turmoil that you've seen lately. I think a lot of what you've seen in markets is because of the uncertainty around tariff policy, that businesses don't know what tariffs are going to be, you know, an hour from now, let alone a day, a week, a month, a year from now. And they just don't know how to invest or how to think about business conditions under those, you know, in that environment.

So, you know, I think that the best thing that the administration could do separate from the substance of the tariffs is just to come up with some finality that they can signal to markets about what the tariff rate will be and stick with it.

BOLDUAN: Yes. What do you believe? Say it and stick with it. What is your agenda and your policy would be a place to begin, Ernie? One thing that we've also heard consistently from administration officials is that this is not going to hurt the American consumer or worker. It's going to be the golden age for the American worker that most Americans aren't invested in the stock market.

[08:10:00]

So these gyrations that we're seeing they're not taking the same hits that wealthy investors are. What is your analysis on how this trade war will impact lower income Americans? Will it?

TEDESCHI: It definitely will. In fact, it's going to hurt lower income Americans the most. So I said earlier that for the average family, this translates to $3,800 less in purchasing power.

But it hurts low income families more than it does higher income families. That's for two reasons. Lower income families spend a greater share of their income in general, and they spend more of their budget on imports than higher income families do.

So lower income families are particularly exposed to tariffs. When you look as a share of your income, lower income families are pinched two and a half times as much by tariffs as upper income families are this year.

So when we're talking about who gets hit by tariffs, it's definitely not other countries. It's America. And within America, it's mostly lower income people who are buying the imports that are going to be hit by these.

BOLDUAN: Raising continued important questions for the administration to answer when they come up with the finality of their policy on these tariffs. Ernie Tedeschi, thank you so much for coming in -- John.

BERMAN: All right, this morning, the Trump administration is reportedly making plans to hold a military parade in Washington to commemorate the anniversary of the U.S. Army, an anniversary which just so happens to fall on the same day as the president's 79th birthday.

A mother who in prison for murdering two of her kids is now facing a new trial over the death of her estranged husband. This time, no lawyers. She's representing herself -- Sara.

SIDNER: And we are live outside the Alamo in San Antonio. Why? Because the Florida Gators are now the national champions, baby. We've got the highlights with Coy Wire live and in person. It's going to be amazing. A little happiness for you this morning, especially if you're a Florida Gator.

(COMMERCIAL BREAK)

BERMAN: So, to quote Thunderdome, roughly, 68 will enter, one will leave. Well, we know who that one is now. Florida emerges from March Madness in glorious fashion. CNN's Coy Wire and the number one Gator fan in America, Sara Sidner, are both in San Antonio. They saw it all happen. Good morning to you. Don't look so happy.

WIRE: I couldn't wipe this smile off my face if I tried, John. Top of the morning to you. Incredible game.

I mean, it's just unthinkable, unimaginable, and we'll get to all the stress that came along with it. Let's check out the highlights, John.

Houston came out swinging. Their nation's best defense holding Florida star Walter Clayton Jr. to zero points in the first half. They led almost the entire game.

SIDNER: But with Clayton getting shut down, Gator guard Will Richard rises up for a team high. 18 points, and in the second half, trailing by 12 at one point, the Gators and Clayton came to life. They came back making huge plays down the stretch, eventually taking a two-point lead.

COY WIRE, CNN SPORTS ANCHOR: And then the moment with three seconds left, John. Houston's Emmanuel Sharp goes for the win, but Walter Clayton Jr. comes flying in, makes Sharp pull up his shot midair, a turnover seals it.

SIDNER: We love you, Walter Clayton. Florida's final national title in 18 years. It's the first time we've seen them in 18 years. They only led for 63 seconds in the game but found a way to pull off a 65-63 win.

WIRE: And at 39 years old, Coach Todd Golden becomes the youngest head coach to win the title in 42 years. I caught up with him as he walked off the court for the first time as a national champ. He was elated. He was -- he started doing the robot, which he told me he was going to do. He tried to do the robot.

SIDNER: He promised. We heard it. All of us heard it.

WIRE: What was going through your mind? This was such an incredible game. As I mentioned, they only led for 63 seconds.

SIDNER: What was going through my mind is I was losing my voice, screaming my brains out. And I literally almost blacked out for a second. That is not an exaggeration. I had to sit down. I was hyperventilating.

And they were like, ma'am, are you OK? I felt pretty old at that moment. And I was sitting down. And then I looked up. And when that moment happened, where Walter Clayton Jr. tied up the game, I'm like, oh, my God, we might win this. Because almost the whole game, we were behind. We were trailing.

WIRE: And I mean with the elation of the victory also comes the agony of defeat. You know, the Houston Cougars.

SIDNER: By the way, I can hear the elation. WIRE: You know, Coach Kelvin Sampson has been a head coach for more than 40 years. And he was so close to getting his first ever national title. Houston's first ever national title.

John, she was a basket case. I saw her at halftime. And she just could not sit still.

SIDNER: I still am.

WIRE: It was awesome stuff.

BERMAN: How many people did you hug? And was Andy Scholz, Houston Cougar fan, one of them?

SIDNER: So we're not friends right now. Me and Andy Scholz. Me and Coy are cool.

Andy Scholz and I had a talk before. I said, I know we can't be friends while this game is going and when it's over. But let's talk about it.

[08:20:00]

And he and I look at each other at one point. And we're like, this isn't fun anymore. This is just complete and pure stress. I want to go. I want to go home. I literally can't take this.

He goes, me too. I can't. This is ridiculous.

So the back and forth. But they were ahead most of the game. And so for me, I'm like, I went all the way here. Came all the way to San Antonio to lose. Heck no.

WIRE: Now, you keep it humble, right? We don't want your head getting too big, especially around Andy Scholes. But if it does, we got a noggin boss for you. We got you something, girl. I got surprises for Sara all morning long. She deserves it.

Congratulations to Gator Nation. Their first title in 18 years.

BERMAN: You know what? It's a good day to be Sara Sidner. But then again, it usually is.

All right, Coy Wire and Sara Sider, our thanks to both of you fabulous people. Congratulations. She's going to pull a muscle smiling this morning.

All right, this morning, quote, if they don't make a deal, there will be bombing. The new threat from President Trump as the White House is set to hold high state talks with Iran or near Iran.

And we are watching for the opening bell on Wall Street as President Trump vows new, even higher tariffs on China.

We have been watching stock futures. Right now, stock futures pointing up because it does seem that some administration officials have backed off their no negotiations pledge.

[08:25:00]

(END VIDEOTAPE)

BOLDUAN: So it appears President Trump is planning himself a parade. Multiple defense officials now confirm the administration is working on a military parade in the nation's capital to commemorate the 250th anniversary of the U.S. Army. Now the big event is also tentatively scheduled for June 14th, which is also Donald Trump's birthday.

CNN's Natasha Bertrand has a reporting on this. And Natasha, people will remember they've heard something of this before, which is the president wanted to, intended to have a military parade in the first administration, and that did not pan out.

NATASHA BERTRAND, CNN CORRESPONDENT: He has wanted this kind of big military parade for years and years now. And back in 2018, he actually was planning for that to happen in the streets of Washington, D.C., but ultimately it was called off because it was going to cost tens of millions of dollars and potentially was going to damage the streets of Washington, D.C.

But now the planning has started again, we're told. And this is all tied to the Army's 250th birthday celebration, which is going to take place on June 14th. The Army has been planning that celebration for well over a year now. It is a very big deal for the U.S. Army, of course.

And in recent weeks, we're told that in conversations with the White House, the White House suggested adding a parade to the Army's celebration, kind of linking the two and showing off the Army's equipment as part of this big birthday bash that they're planning to have.

And so coincidentally, this also does, as you said, coincide with Trump's 79th birthday. But we're told that the U.S. military and the White House, they are still in the planning stages of this. The White House has not actually signed off on final, final plans for this parade.

But the U.S. Army has been working with engineers, we're told, to make sure that the parade does not actually damage the streets of Washington, D.C. because of all the equipment that is potentially going to be rolling down the streets there.

Now, as you can see from this map, the parade route tentatively would start from the Pentagon and it would end near the White House. That's about four miles. And then the bulk of the celebration, we are told, would occur on the National Mall.

But the White House has not actually been in touch with county and city officials about the parade in recent weeks. Only recently, on Friday even, did they even begin to reach out to D.C.'s mayor and Arlington County officials about it. So there's still a lot of planning to be done here. But it does appear as of now that Trump is finally going to be getting his big military parade that he has wanted for several years now -- Kate.

BOLDUAN: All right, we will see. Natasha, great reporting. Thanks for bringing it to us. Appreciate it.

Still ahead for us, a species of wolf extinct for thousands of years is back again. The amazing science behind it.

(COMMERCIAL BREAK)

[08:30:00]