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China Retaliates Against U.S. Increases Tariffs To 84 Percent; Trump Advisers Musk And Navarro Spar Over Tariffs; Inside The Salvadoran Mega-Prison Where U.S. Deportees Live. Aired 7:30-8a ET

Aired April 09, 2025 - 07:30   ET

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

(COMMERCIAL BREAK)

[07:32:05]

JOHN BERMAN, CNN ANCHOR: All right, to breaking news this morning. China just announced huge new tariffs on the U.S. The trade war is on. Eighty-four percent tariffs coming from China, 104 percent coming from the United States.

So moments ago billionaire and vocal supporter of President Trump Bill Ackman posted this on Twitter. "Our stock market is down. Bond yields are up and the dollar is declining. These are not the markers of a successful policy. I am receiving an increasing number of emails and texts from small business people I do business with or have invested in, expressing fear they will not be able to pass on their increased costs to their customers and will suffer severely negative consequences."

Still, the White House stands behind this policy and says President Trump is getting offers for deals.

Let's get right to the White House for that. CNN's Alayna Treene is there. The White House continues to talk about these offers but as of now no deals.

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: That's right. And look, despite some of what we're seeing in the market and the concerns we are increasingly hearing from even some of the president's supporters, like Bill Ackman, the president is reveling in this idea that these countries are coming to him and wanting to deal on some of these things.

Last night when he was speaking to Republicans he essentially boasted. He said, "These countries are calling us up, kissing my..." -- you can fill in the word there. "They are dying to make a deal."

Now, John, the White House has signaled in recent days that the door is now wide open for negotiations, but as you mentioned it's still unclear exactly what the formula will be to try and find some relief from these duties.

However, we are learning now behind the scenes that U.S. diplomats, White House officials, and people close to the president are telling these countries that really, they should be thinking outside the box with some of what they are going to be offering. Essentially, if there is anything they can think of that is unique that can sweeten this deal for President Donald Trump they should play that card.

Now, some of these ideas that we've heard circulated in this from our colleagues Kevin Liptak, Kayla Tausche, and Kylie Atwood -- they say some of these things include securing the freedom of Americans wrongfully detained abroad. Committing to working with U.S. artificial intelligence companies. Buying more U.S. energy. Combating global trafficking. The list goes on. That's according to conversations with five people who are familiar with some of the brainstorming sessions.

But look, in my conversations with White House officials they tell me essentially the president has made clear that he really wants to milk these countries for what he thinks they are worth. For what he believes the United States deserves. One official told me that he is enjoying that these countries right now seem desperate.

Take a listen to what he said yesterday on this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: I do think that the war with the world, which is not a war at all because they're all coming here. Japan is coming here as we speak. Things that people wouldn't have given us two years ago -- wouldn't have even thought of it two years ago, three years ago, five years ago, seven -- they're giving us everything. They don't want tariffs on themselves. And it's very simple -- we're making deals.

(END VIDEO CLIP)

[07:35:08]

TREENE: Now John, of course, a key question is how quickly could we see some of these deals to fruition and it's unclear. I mean, the White House said yesterday that they want to make tailormade deals to each country. That will likely take time.

But at the same time there's also a lot of people in this White House and this administration that I'm hearing want to put wins on the board and want to do so quickly. They want to ease what we're seeing in the markets. They want to give Americans hope and have them buy into this tariff plan and to try to show that it's working.

So we potentially could see some movement on that to try and install a little bit more of that positivity and optimism than what we've been seeing thus far.

BERMAN: Yeah. The future of the markets seems to be saying give us something that we can latch onto --

TREENE: Right.

BERMAN: -- something positive. They seem to be asking for it.

This may be an abstraction. Some of these tariffs might seem like an abstraction to consumers. But one thing they might identify with is shopping -- is online shopping on sites like Temu, and things are changing there.

TREENE: That's right. The Trump administration, which had already closed this trade loophole to really have this exemption on some packages that are worth less than $800. So essentially, places like Temu and Shein that come from China are -- have been exempted for a long time now on some of these broader tariffs.

That's no more. The president has actually tripled the levies that these type of companies will be facing. So essentially, some of these super-cheap items that have been coming from China and other countries into America are now going to see some of those really steep tariffs that the president imposed just this morning at 12:01 a.m.

All to say a lot of that fast fashion -- the things that consumers try to buy goods from other places that are much cheaper -- that's no more as well. We're going to see a lot of higher prices on many of those things that people rely on -- John.

BERMAN: All right, Alayna Treene at the White House today. My bet is you're going to have a busy morning. Great to have you on with us. Thank you.

TREENE: Yeah.

BERMAN: Kate.

KATE BOLDUAN, CNN ANCHOR: More announcements are going to be coming in it feels like this morning for sure.

Also happening in this moment, the European Union plans to vote today on its first retaliation measures in response to President Trump's tariffs. So far, what the EU is facing includes essentially three sets of new tariffs just to bring you up to speed because honestly, it's hard for all of us to keep track.

First, 25 percent on steel and aluminum -- all steel and aluminum that will be coming to the United States. Then 25 percent on cars. And finally, a 20 percent tariff on everything else.

Let's get over to CNN's Melissa Bell in Paris with the very latest. Not what I was expecting, Melissa, but I'm --

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: Kate --

(Laughing)

BELL: And I'd like you to listen to this. That, Kate, is a sound that has just become much more expensive for American consumers. Ferraris, of course, one of those luxury items that Americans love more expensive as a result of the 20 percent tariffs. And, of course, generally, the car industry has been hit so hard not just by these steel and aluminum tariffs but as you mentioned, the car ones as well.

But it isn't just luxury goods. Even as we await what the reciprocal tariffs from the EU will be on American imports there is this fascination here in Europe at what America is doing to its own consumers.

Take the humble Heineken beer, itself already the victim of increased aluminum prices. It is now subject to that 20 percent across-the-board tariff on all European goods that will now enter the United States. There's no way this doesn't impact American consumers already.

Take this, a rather fine bottle of Dom Meo Camuzet burgundy wine. Two- point-five billion euros worth of European wines were imported into the United States last year. Now they, too, the subject of a 20 percent import tariff. But you could argue that means Californian chardonnay benefits. The problem is Kate that Californian chardonnay also has depended on supply lines that allowed it to be made with French oak barrels, corks, and glass bottles that were imported.

So it is the impact on all of these American businesses, all of these American consumers even before the European Union decides how it's going to retaliate, Kate.

BOLDUAN: I am -- all of this is very serious and you're taking it very seriously, and I am so here for how you are presenting it, Melissa. You are fantastic on a regular day, especially when it is sunny, beautiful, and you have found yourself in a Ferrari with a bottle of wine and a Heineken. I mean, I don't know where to go from that.

Thank you so --

BELL: I've had worse days.

BOLDUAN: Yeah, exactly. Thank you so much. A perfect depiction of exactly some of the items that we all will be paying more for because I know you are in the market for a Ferrari right now.

BERMAN: Yes, right. I was going to say in a Ferrari with a Heineken and a bottle of wine. I call that Wednesday.

BOLDUAN: (Laughing).

BERMAN: This morning two of the president's top advisers are publicly feuding over tariffs. Elon Musk and Peter Navarro trading insults -- like, real harsh ones on social media after Navarro said this on television.

[07:40:07]

(BEGIN VIDEO CLIP)

PETER NAVARRO, WHITE HOUSE TRADE ADVISER: We all understand in the White House and the American people understand that Elon's a car manufacturer. But he's not a car manufacturer; he's a car assembler in many cases.

(END VIDEO CLIP)

BERMAN: So Musk didn't like that, and he went on Twitter and called Navarro a moron who is "dumber than a sack of bricks." He later offered an apology saying that was unfair to the sack of bricks.

The reaction from the White House -- they say they like this.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: These are obviously two individuals who have very different views on trade and on tariffs. Boys will be boys, and we will let their public sparring continue.

(END VIDEO CLIP)

BERMAN: All right. With us now, CNN political commentator and former Trump White House communications director Alyssa Farah Griffin.

We'll get to the specific personalities here in just a second. But this type of sniping back and forth when there is this market turmoil and concern over tariffs -- how do you think it plays?

ALYSSA FARAH GRIFFIN, CNN POLITICAL COMMENTATOR, FORMER TRUMP WHITE HOUSE COMMUNICATIONS DIRECTOR: It certainly doesn't help.

And listen, the White House has really struggled to get a coherent message out on what the goal of these actual tariffs is. We saw Karoline Leavitt say this is not a negotiation. Peter Navarro publishing an op-ed saying this is not a negotiation. And then President Trump goes on Air Force One and says it's a negotiation and says he's meeting with the Japanese. So that kind of uncertainty and inconsistent public messaging certainly is going to continue to spook markets.

And I would just note that if the goal in this is, in fact, to make some sort of -- whether it's bilateral or multilateral trade deals with some of these countries that takes a lot of time. I was in the White House during the USMCA negotiations and that was a yearlong process only for Trump to reverse course on the entire thing a few years later.

So this notion that there might be some sort of light at the end of the tunnel sometime soon I think is probably mistaken.

BERMAN: Now, I think in a way -- because I've been listening to you the last 24 hours -- you're not surprised at people publicly inside the Trump sphere turning on Peter Navarro. Why not?

GRIFFIN: Peter Navarro is somebody who in the first Trump administration a lot of folks frankly would try to keep out of meetings with the president on high-level economic and trade decisions.

There were some things Peter was very good at. He understands the threat of China. He would often get in the president's ear about being tougher on China. But he was somebody who at times would present ideas that were half-baked.

And I remember whether it was the vice president Pence's office or Steve Mnuchin, or Robert Lighthizer, the former U.S. trade rep, actively trying to keep him out of high-level consultations because he would bring information to President Trump that just was not ready for prime time.

So the fact that he's sort of the leading force in front of these massive, like, global market-rocking tariffs is a -- is a bit concerning. I mean, and everyone from Pence world to Mick Mulvaney to other economic advisers of the former president, like Larry Kudlow and the Elon Musk, seem to get that this is not the guy that should be steering the ship.

But I'd just remind you there's a deep well of loyalty from President Trump to Peter Navarro. This is a man who went to jail, frankly, or refusing to comply --

BERMAN: Um-hum.

GRIFFIN: -- with a congressional subpoena that would force him to testify against him. So I'm curious to see how long Donald Trump stands by his man or if he reacts more to the Elon Musk side of this.

BERMAN: Yeah. I was going to say who do you think wins here? I mean, Musk has been his guy.

GRIFFIN: I mean, I'm also surprised. I mean, Donald Trump, to his credit, literally telegraphed that he was going to do this on the campaign trail. He said he was going to do sweeping tariffs. So I'm surprised when the Elon Musks and the Bill Ackman -- Bill Ackmans of the world are surprised that he's doing exactly what he said.

And Trump's always believed in tariffs. He's always thought that they were a way to bring revenue into the U.S. to reindustrialize us. And I think that he feels like he's got a chance in this second term to do something fundamentally and foundationally different with the economy. But whether it's going to work is hard to see if your chief adviser is someone like a Navarro. Perhaps they bring in some more experts who help him find some more nuanced approaches on this. That may be where this is all heading.

BERMAN: The markets, the last four or five days, seem to have been practically begging. They're saying, you know, give us something to hang out hats on. We're dying to come out of this rut that we're in and have -- you know, have the markets go up, but you're not giving us anything concrete.

How badly do you think the White House needs to make an announcement that sounds good? Oh, we struck this dead with South Korea. Oh, we struck this deal with Japan.

GRIFFIN: I certainly think advisers around the president are telling him he imminently needs to make really some good news just to avoid what we saw with the markets closing yesterday and to start to get things trending the right direction.

[07:45:00]

But I get this sense -- and this is just my observation -- that in this second term Trump is a lot less reactive to bad headlines and even to bad news in the stock market.

In the first term he, every day in the outer Oval, would look at the afternoon -- you know, at the closing bell where the market was that day. It truly mattered to him. And I don't get the sense that he feels that way. He feels like he's got some time, he feels like he has his mandate, and he may very well take that time.

BERMAN: Yeah, we'll see if the markets can take that time or withstand that time.

GRIFFIN: Yeah.

BERMAN: Alyssa Farah Griffin, great to speak with you this --

GRIFFIN: Or our 401ks, yeah.

BERMAN: Well, there's that, too. Great to see you this morning. Thank you very much.

And we do have a major programming note on all of this. Senator Bernie Sanders will speak with Anderson Cooper and take questions in a CNN town hall. This is a special event. You don't want to miss it. That's tonight at 9:00 Eastern right here on CNN -- Kate.

BOLDUAN: So the case of the man that the government mistakenly deported to El Salvador -- it stands in something of limbo this morning. The Maryland father was deported March 15, and a federal judge ordered the administration then to return him from El Salvador, and the deadline being earlier this week. But then the Supreme Court stepped in and temporarily paused that return order. The justices are now expected to act in the coming days on this.

All the while, that man sits in a Salvadoran prison along with hundreds of other deportees, a notorious prison that CNN's David Culver just got exclusive access to.

(BEGIN VIDEOTAPE)

DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT: When we first walked in to these halls, CECOT was a powerful symbol across Latin America -- but now, since folks in the U.S. are far more familiar with what's happening here because it has a direct connection.

The last time we were here there were about 80 or so people per cell. I'm looking right now and it's already 70 who have come out and they've probably got another 30-plus. So you're talking more than 100 people in some of these cells now. And the director has told me they've increased the prison population because more arrests have taken place within this country.

CULVER (voiceover): Built to isolate El Salvador's most dangerous criminals, the Center for Terrorism Confinement or CETCO opened in early 2023 as the centerpiece of President Nayib Bukele's anti-gang crackdown.

UNIDENTIFIED MALE: (Speaking foreign language). INMATES: (Speaking foreign language in unison).

CULVER: Why are there more people here?

BELARMINO GARCIA, PRISON DIRECTOR, CECOT: (Speaking foreign language).

CULVER: He says the state of exception -- essentially, the state of emergency that's been declared under President Bukele going back to 2022 will not end until the last gang member has been taken from the communities and brought here to CECOT.

This is a court hearing that's playing out right now. This is a preliminary hearing that's playing out. There's one in there, and this one hasn't yet started. We can go in and see.

Anderson Cooper, last night, was asking me is everyone in CECOT convicted.

GARCIA: No. (Speaking foreign language).

CULVER (voiceover): Garcia says many here have been convicted but others are still going through the judicial process. And when we asked, he does allow us to sit in on what appears to be court hearings underway.

CULVER: I hear you when you say that there are people who have done horrible things, but is it possible that there are people who are innocent as well in here?

GARCIA: (Speaking foreign language).

CULVER (voiceover): Garcia claims every person is CECOT is an active member of a terrorist organization.

CULVER: And you're confident that that's the case?

GARCIA: That is correct.

CULVER (voiceover): Critics have said there's a lack of due process so it's impossible to say for sure.

CULVER: Questions have been raised about that severity of treatment, and it is seen certainly as harsh. But when you talk to Salvadorans they say yes, perhaps harsh but totally necessary to have eradicated the gangs and to keep them out. The question is, is that same level of treatment necessary when it comes to the deportees that are coming here from, say, the U.S.?

But if you look just straight down there at the very end that's sector eight. That's where the deportees, including those from Tren de Aragua, are being held. We cannot go into that sector. When I asked why he says it's not part of this approved tour.

GARCIA: (Speaking foreign language).

CULVER: He said everybody's got the same conditions. It doesn't matter where you are, including sector eight.

There are four zones and in each zone you have two modules -- the sectors that have also within them the cells. And they can have up to 5,000 prisoners within each module.

CULVER (voiceover): That's a maximum capacity of 40,000, which Garcia says they're getting closer to but he adds that they still have sufficient space. He won't give the exact prison population for security reasons, he says.

[07:50:05]

CULVER: CECOT isn't just a prison; it's a message from this government to the gangs and really to the rest of the world. For critics, this is a place where rights vanish. But for supporters, of which there are many, including the leaders here and many of the people who live in this country, this place is a symbol of freedom -- newfound freedom as they see it. For them to see this exists in a way it does, while some may perceive it as harsh, they see it as the only reason they're able to walk freely outside these gates and not live in fear for most of their lives.

Gracias.

(END VIDEOTAPE)

BERMAN: And our thanks to David Culver for that.

This morning a new set of targets in the Trump administration campaign against higher education. Billions of dollars in federal fundings now being withheld.

(COMMERCIAL)

[07:55:42]

BERMAN: All right. New this morning the Trump administration hitting new schools in its battle with elite education.

The White House tells CNN that more than $1 billion in federal funding for Cornell University has been frozen. The reason -- to quote an administration official -- is several ongoing, credible, concerning Title VI investigations. That's the federal statute that prohibits discrimination in programs and activities that receive federal funding.

Also getting hit, Northwestern -- $790 million in federal funds now frozen for that school as well.

This follows similar moves against other universities over their DEI policies or their handling of protests against the war in Gaza.

All right. Breaking overnight, three people were killed and three others injured in a shooting in northeastern Virginia. Police report that no suspects have been apprehended and at least one shooter remains on the loose. Fredericksburg City Public Schools have announced they will operate on a two-hour delay while they search for the person -- while the search for the person responsible continues. There is a manhunt underway.

The multistate measles outbreak is closing in on 600 cases and experts warn that it could get worse. More than 500 of those cases are in Texas. And a bit of a change of emphasis from Health and Human Services Secretary Robert Kennedy Jr. He is now publicly urging people to get vaccinated.

New violence against Tesla. The Lacey Police Department in Washington State says they found a Tesla charging station heavily damaged. The FBI is now investigating just weeks after launching a task force to crack down on attacks on Teslas. North of Lacey, up in Seattle, police there have counted 22 vandalism incidents on Teslas.

And Kate, you've got the best story of the morning and it's possible I was there.

BOLDUAN: Possible. An overnight thriller. The New York Knicks head-to- head with defending champs the Boston Celtics. Hence why Berman would have been there.

CNN's Carolyn Manno is here now with the highlights.

CAROLYN MANNO, CNN SPORTS CORRESPONDENT: It was a big night overall in the NBA. Lots of playoff implications. I know Berman is waiting to see how this one ended.

The Celtics at Madison Square Garden with a chance to sweep the regular season. And Boston actually trailed by double digits in the first half. The Knicks went on a 12-2 run in the fourth quarter before Jayson Tatum forced overtime, hitting the clutch three with seconds remaining.

BOLDUAN: Ooh.

MANNO: He was fantastic.

But former Knick Kristaps Porzingis was masterful from beyond the arc showing Knicks fans what they're missing. The game tied in overtime, and he nails the 30-footer with less than a minute left to put Boston ahead. That was one of eight threes on the night for him.

BOLDUAN: Wow.

MANNO: He finished with a game-high 34 points in a 119-117 Celtics overtime thriller.

The Lakers and Thunder also battling late into the fourth quarter. The Lakers up one right as Luka Doncic was hit with his second technical foul and ejected from the game. This was a really strange moment. He said afterwards he was jawing at a fan but the refs taking real exception. The Lakers ended up losing this one 136-120.

And about 16 hours after holding up a gritty Houston team to earn a third national championship, the Florida Gators returned home to a hero's welcome in Gainesville on Tuesday. The team greeted by thousands of screaming fans as they got off the plane and made their way to a massive pep rally on campus. I think Sara Sidner is in there somewhere.

The program was --

BOLDUAN: She's still recovering.

MANNO: I was going to say is she coming back? Is she even coming back to the show? She's probably out with the crowd --

BOLDUAN: We're going to make her.

MANNO: -- with her pompoms and big hat in tow.

And then the start of this year's Masters just days away. One of the most exclusive dinners in the world taking place last night.

BOLDUAN: Um.

MANNO: The legends assembling at the Masters champions dinner reserved only for those who have worn Augusta's esteemed green jacket. Some were quick to note the absence of Tiger Woods, but the five-time Masters champ is not playing this week. He's still recovering from Achilles surgery, so not attending the dinner.

World number one Scottie Scheffler planned this year's menu. It featured culinary delights from Texas -- some of Scottie's favorites. There were some repeats from 2023. You had the cheeseburger sliders. You had the --

BOLDUAN: Yum.

MANNO: -- the firecracker shrimp. It looks good, right?

BOLDUAN: Yes.

MANNO: Pap Scheff's meatballs ravioli bites new additions. And, of course, you have to finish things off with the warm chocolate chip skillet cookie.

What do you think about this menu? Some were saying maybe Tex-Mex. Oh, not as sophisticated as the Masters normally suggests.

BOLDUAN: Oh, I'm here --

MANNO: But it looks pretty good. It's elevated.

BOLDUAN: I'm a full-on yes. And by the way, you have a penalty for bringing that deliciousness to this hour of television.

MANNO: Sorry.

BOLDUAN: We still have multiple hours to go before we can have a meal even close to that.

MANNO: (INAUDIBLE).

BOLDUAN: Carolyn, how dare you?

MANNO: I'm sorry. I'll bring cookies next time.

BOLDUAN: Here's our -- stay with me. Berman, did you stay for overtime?

BERMAN: Yeah, I did.

BOLDUAN: You did?

BERMAN: Sometimes you have to --

MANNO: Of course.

BERMAN: -- sacrifice for your art. And then we stayed for the entire game. And I saw Kristaps Porzingis hit that three from, like, 150 feet. It was great.

[08:00:00]