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Nuclear Powers India and Pakistan at Risk of Wider Conflict; Interview with Rep. Darin LaHood (R-IL): Ford Hikes Prices on It's Made-in-Mexico Vehicles, Tariffs. Aired 3:30-4p ET

Aired May 07, 2025 - 15:30   ET

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

[15:30:00]

ERICA HILL, CNN HOST: ... Pakistan do have nuclear capabilities. What is your level of concern that either would turn to those?

LEON PANETTA, DEFENSE SECRETARY/CIA DIRECTOR, OBAMA ADMINISTRATION: Well, it obviously is a concern because they are nuclear-powered countries and you never know how this thing could escalate. There have always been tensions between India and Pakistan. They go back to 1947 when India was partitioned into India and Pakistan.

There have been several wars that we've seen take place in the interim. I don't think either Pakistan or India wants to go into a full-fledged war, but when you're in a game of tit-for-tat, and there's no question now that Pakistan will probably respond to what India did, there is truly the danger of escalation here and that should concern everybody in the world.

HILL: As we look at this, President Trump has called this escalating conflict, in his words, a shame. He said he just hopes that it ends very quickly. Just remind us what the role of the U.S. has been, right, when it comes to this sort of long-festering conflict and concerns over this region of Kashmir. And also whether you see any circumstance under which America would intervene in any way.

PANETTA: Well, the United States has played a role in that part of the world. When I was director of the CIA, there were tensions that were rising between Pakistan and India, and the United States took steps to try to get both countries to be able to back off because we do think that that area of the world is important, and so the United States should be providing some kind of mediation. China has also called for both countries to back off. Qatar actually could also be helpful as well.

I think that those countries, and the United States in particular, have to play a role here because both Pakistan and India would respond if the United States got involved and said, you've got to stop, you've got to be able to back off of the kind of escalation that could lead to war in that region.

HILL: Do you think there is an appetite for that, and also is there the bandwidth given what we see, right, in terms of the number of global issues, if you will, that this administration is dealing with under a president, too, who has made it clear that he wants to back off some of that global involvement and truly fulfill his vision of America first?

PANETTA: Well, that's a very fundamental question about whether or not the role of the United States is going to continue to be a world leader, or whether we're basically going to withdraw. The problem is, in withdrawing, these dangers to our security are not going to disappear. And we are living at a dangerous time.

We've got a war in Gaza. We've got a war in Ukraine. We've got conflicts both with Russia and China. We've got to worry about North Korea. We've got to worry about Iran. So there are a lot of areas of conflict in the world.

I don't think the United States can run and hide from those conflicts. We have got to exercise some leadership, frankly, working with our allies to try to make sure that we can try to preserve the peace that the whole world needs as a result of these kinds of tensions. So my hope is that the United States will not back away.

This is not a pretty-please situation. This is a situation where you've got to roll up your sleeves and actually engage with both India and Pakistan if you're going to be able to control these rising tensions.

HILL: Mr. Secretary, always appreciate your time and your insight. Thank you.

PANETTA: Good to be with you.

HILL: As President Trump's trade war rages on, Ford is now announcing it will raise prices on the cars that it imports from Mexico. Republican Congressman Darren LaHood joins us next.

[15:35:00]

(COMMERCIAL BREAK)

BRIANNA KEILAR, CNN HOST: Just in today, Ford significantly hiking prices on three of its vehicles that are made in Mexico. It's the first U.S. automaker to do this since President Trump announced tariffs. The vehicles that are going to cost more are the electric Ford Mustang, the Maverick midsize pickup and the Bronco Sport SUV.

Ford says the sticker price is going to go up by $600 to $2,000 per vehicle built after May 2nd. And those should be coming online in early July. That's important to note there.

With us now is Republican Congressman Darren LaHood from Illinois. Sir, thank you so much for being with us.

REP. DARIN LAHOOD (R-IL): Good to be with you, Brianna.

KEILAR: So we're watching this. Ford hiking prices because of tariffs.

[15:40:00]

Are you worried? Because I know you have these auto jobs in your district that are supposed to come back online here. Does this concern you?

LAHOOD: Well, I think anytime you have a raising of costs for vehicles, you should be concerned. But as President Trump said when he announced his tariff policy, there was going to be some short-term pain economically. I think we're seeing that.

But Brianna, I don't think we can continue to go down this path of allowing countries, particularly China and others to take advantage of our U.S. market. I think what President Trump is trying to do through his policies is to right many of the wrongs that have been done in the trade space and bring back some of those core manufacturing jobs to the United States. And so I think we have to give him the ability to negotiate a number of these trade deals.

As you saw, there was a pause for 90 days with a number of the tariffs. And now President Trump's trade team, which I have a lot of confidence in, Ambassador Greer, Secretary Bessent, Secretary Lutnick, they're engaged in these trade negotiations. So let's see what those results are.

And then lastly, I think it's positive news that U.S. trade officials will be meeting with the Chinese this weekend in Switzerland to talk about a de-escalation with China.

KEILAR: Yes, pause on those so-called reciprocal tariffs. But you still have these 10 percent tariffs in place. And that is nothing to sneeze at, right? That's pretty big here.

So we're talking about these Ford cars, which are made in Mexico. But Ford isn't even passing on -- we talk about that $600 to $2,000 per vehicle. That's not even the full cost. They're saying they're not even passing on the full cost of the tariff.

So it really does become a bottom line issue for the automakers. They're absorbing the costs. You have this idled Stellantis plant in your district, which was widely reported that the reopening of the plant was delayed because of sales and profits tumbling.

So if you pull from tariffs, could you be looking at those jobs being further delayed?

LAHOOD: Well, I don't think so. I think when you look at what we're going to do in the reconciliation bill, I serve on the Ways and Means Committee. And making the tax cuts permanent from 2017 and the other changes we're going to make in the tax bill, I think are going to give rocket fuel to the economy.

We saw what happened in 2017, Brianna, when we passed the Tax Cuts and Jobs Act. It created the best economy in our lifetime. So I think, again, I think there'll be some short-term pain because of the tariffs.

But if you couple that with a tax bill and reconciliation bill that gets energy production at an all-time high in this country, which we'll have in there, recalibrates the regulatory environment, and brings permanent tax relief to the American people, I think that will help offset that.

I would also note, too, Brianna, look at the record amount of investment in this country, even through the tariff regime, whether it's NVIDIA making their announcement, TSMC, Johnson & Johnson, OpenAI. I mean, these are investments.

Apple making significant investments with large amounts of money in the country because of President Trump and his policies.

KEILAR: You mentioned the talks between the U.S. and China and Switzerland, the first that we've seen. So this is going to be a very big focus. Talk to us about how critical those talks are.

When you're talking about short-term pain, how long can Americans go without a deal between the U.S. and China?

LAHOOD: Well, I would just say this. Tariffs need to be used in a strategic and tactical way to go after bad actors. And you look at what China has done.

They continue to steal our intellectual property. They play by a different set of rules and standards than every other industrialized country in the world. They engage in wolf-warrior diplomacy.

The fentanyl issue has not been resolved. They've doubled down on authoritarianism. Their provocation in the South China Sea is unacceptable.

And so how do you stop that behavior? I think what President Trump has appropriately done is, he's raised these tariffs because their behavior is unacceptable.

Brianna, look at when we allowed China into the World Trade Organization roughly 22 years ago. The argument at the time was, bring China into the WTO and they're going to reform. They're going to liberalize. They're going to become more like us.

None of that happened. In fact, the opposite happened. They've taken advantage of our system. They've manipulated the World Trade Organization. And President Trump has said enough is enough.

So, again, I think there will be ramifications of the tariffs. But I think most Americans want to win the strategic competition against China and beat the Chinese. And we need an even playing field. I think these negotiations are the step in the right direction. But we'll have to see what the result is.

KEILAR: Most Americans, you know, want to get through the week, right, and be solvent if they can. And we've seen time and again in politics that that is the top priority for voters. So how long do you think they will tolerate this?

[15:45:00]

Because I hear you talking about strategic goals, and some of them may agree with you on that. But if they can't, they will tolerate this. Because I hear you talking about strategic goals, and some of them may agree with you on that.

But if they can't get the things they need for their family, that is something that they don't have the luxury of desiring over some of these things that they need. So what do you think? What is the timeline that you're looking at?

Because you're talking about short-term pain. But really, what is it for people that you think they can endure?

LAHOOD: Well, first of all, I think most Americans that I represent, my constituents, they're very patriotic. They do want to win the strategic competition against China. And they're sick and tired of them taking advantage of that.

Secondarily, President Trump was elected partly on the economy. And as we look at the reconciliation bill, his tax plan, what we're going to put forth, what we're going to end up passing in the House, again, is going to bring relief to the American people, help bring down inflation, help bring down costs, get back to energy and independence.

KEILAR: But they may not have that much time. So when you're thinking, how much time? And why is it hard to commit to an idea on a timeline?

LAHOOD: Well, the timeline I would give you is the reconciliation bill is going to be brought forth to the House here in the next couple of weeks. We're going to get it over to the Senate. And we're hopefully going to get it passed into law within the next four to six weeks.

I think that will happen very quickly and get that signed into law.

KEILAR: And the effect of that on Americans and their bottom line, when they actually see money, is?

LAHOOD: Well, I think what you'll see is a reduction in inflation. There is a tremendous amount of money sitting on the sidelines in this country, waiting for predictability and certainty. That's what they want in the economy for short and long-term investments.

Whether you're a farmer, a small or medium manufacturer, or a businessperson. President Trump's tax plan and our plan in the Congress is going to bring that predictability and certainty.

Remember, Brianna, if we do nothing this year, we're going to have $4.5 trillion of tax increases by the end of the year. So listen, I think people are anxious and nervous, appropriately, but we're about ready to change that with our reconciliation bill.

KEILAR: All right, we'll be watching to see what happens. Congressman Darren LaHood, thank you so much for being with us.

LAHOOD: Thank you, Brianna.

KEILAR: We do have some breaking news. Three former Memphis police officers have just been acquitted of state charges in the 2023 fatal beating of Tyre Nichols. He is the 29-year-old who fled during a traffic stop and whose beating by officers was caught on camera. The defendants were found not guilty of second-degree murder, aggravated assault, and aggravated kidnapping. They do still face the prospect of years in prison after they were convicted of federal charges last year. Two other officers involved in the incident have agreed to plead guilty to state charges. They are not standing trial under deals that they struck with prosecutors.

Here's a statement from the Nichols family's legal team. It says, quote, Today's verdicts are a devastating miscarriage of justice. The world watched as Tyre Nichols was beaten to death by those sworn to protect and serve. That brutal, inhumane assault was captured on video, yet the officers responsible were acquitted. Tyre's life was stolen and his family was denied the justice they so deeply deserve. We are outraged and we know we are not alone.

We'll be right back with more news.

[15:50:00]

(COMMERCIAL BREAK)

KEILAR: Venice, Italy's magical city of canals, is facing an environmental crisis, a result of its sinking foundations and rising sea levels.

HILL: Right, so you've got both those things at play. And if you hear saving Venice, you probably think, oh, we need to save Venice from sinking and flooding. But the reality is, for most locals, when you talk about saving Venice, the meaning is completely different.

And on an all new episode of "THE WHOLE STORY", we went to Italy to see that for ourselves.

(BEGIN VIDEOTAPE)

HILL: Foreigners come and they think Venice is sinking, we have to save it. When you hear save Venice, what does that mean to you?

MICHELA BORTOLOZZI, FOUNDER, RELIGHT VENICE: Respect Venice when you come here, understand where you are. Always I ask, do you know that we have cinema, we have school? Oh, really?

We have a swimming pool, two swimming pools in town. I can't believe it. But a lot of people don't really know how really Venice works.

MATTEO SILVERIO, CO-FOUNDER, REHUB: Most of the time I argue with tourists. They say, OK, do you usually stand in the middle of the street during the rush hour? No, they will kill you. Either a bike or a car. So that here, this is a street, this is not a pedestrian way. This is a nice place to take pictures.

Now they are all mad of selfies. And they take selfies on the top of the bridge.

UNIDENTIFIED FEMALE: Pretending nobody passes by.

SILVERIO: Pretending they're passive, they ruin my pictures. No, I'm just going home.

(END VIDEOTAPE)

KEILAR: I'm just going home. OK, first off, I'm wearing green today because I'm green with envy of your assignment. I'm so jealous.

OK, but let's put that aside here. So saving Venice, it's about saving it from this tourist overrun, which is so much of what Venice has become known for as well.

HILL (on camera): It absolutely has, right? And Venice really leaned into tourism, especially in the 70s and the 80s. And this is the main economic driver for the city.

So this is not about totally getting rid of tourists. But one of the gentlemen who we spoke with at that luncheon, who's part of this hour, says that Venice is really the canary in the coal mine.

[15:55:00]

He believes that as Venice can figure out how to deal with these massive numbers of tourists and still bring the income in, but respect the city, give locals a place to live, a place to shop, you know, not be overrun by expensive Airbnb so they can't rent an apartment. If they can figure that out, they'll be fine. If they can't, he warns it will turn into an amusement park and a shell of what it was.

So to save it, you're saving the heart and the soul of the city and you're saving the Venetians.

KEILAR: How do you do that besides making a suggestion box for all the tourists?

HILL: So there are a number of proposals, which you'll hear from all of those wonderful people at the luncheon there, right? In ways that you can be a more thoughtful tourist, but also the city itself. You know, they tried this tourist tax last year, a five euro fee.

Did it work? Did it not? We'll talk about that a little bit, what that could mean.

And also, what does the water mean in terms of saving this? But all those things will come together in the most beautiful hour that you will see.

KEILAR: Oh, cannot wait. Thank you so much.

HILL: Thanks for promoting.

KEILAR: All right. You tell us, tell us where we can see this.

HILL: Please join me and our incredible team for an inside look at the threats to Venice and the solutions. "SAVING VENICE", an all new episode of "THE WHOLE STORY WITH ANDERSON COOPER", one whole hour, one whole story, airs this Sunday, 8 p.m. Eastern, only on CNN. It is the perfect topper to your Mother's Day. We'll be right back.

KEILAR: I will say so. Cannot wait to see it.

(COMMERCIAL BREAK)

HILL: Well, a short time ago, we did get smoke on day one for the first vote. Black smoke. So the Conclave will be reporting back for duty tomorrow as we wait and watch for that white smoke telling us we have a new pope.

KEILAR: All right, that's it for us. Erica, so great to have you.

HILL: I love being here.

KEILAR: "THE ARENA" with Kasie Hunt starts right now.

END