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Trump Unveils New Global Tariffs To Take Effect Next Week; Harris Says, I'm Always Going To Be Part Of The Fight For Our Democracy; Storms Drench Millions From D.C. To New York, Trigger Flashfloods. Aired 7-7:30a ET

Aired August 01, 2025 - 07:00   ET

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

[07:00:00]

KATE BOLDUAN, CNN ANCHOR: Breaking overnight, President Trump unveiling new tariffs on countries really around the world. Investors not loving it. Global stocks falling and so are U.S. futures. We're also waiting for a key jobs report this morning. What that could tell us now about where the economy is headed.

JOHN BERMAN, CNN ANCHOR: Happening now, a new flash flood threat. We'll tell you where concerns are this morning after intense storms wreak havoc from D.C. to New York, killing a young boy.

And the moment a haircut turned into a murder arrest, the barber who knew immediately that something was off when a murder suspect sat in her chair.

Sara is out. I'm John Berman with Kate Bolduan in this is CNN News Central.

BOLDUAN: The breaking news this morning, President Trump has signed an executive order imposing historic sweeping tariffs on dozens of countries around the world, and yet another major escalation of his trade war.

The announcement coming hours before the midnight deadline that we talked so much about for America's trading partners to cut a deal. The new rates are now set to take effect less than a week from today on August 7th. Under the president's order, there will now be essentially a 10 percent tariff on countries with -- countries the U.S. has a trade surplus with. And for countries where the U.S. runs a modest trade deficit, they now face a baseline tariff of 15 percent. And then 26 countries will be subject to tariffs higher than 15 percent.

As for America's neighbors and two of its top trading partners, the president is hiking tariffs on Canadian goods not covered by the current free trade agreement from 25 to 35 percent now. The reason behind that, still the Fentanyl crisis.

Canada's prime minister calls the hike disappointing, but Mexico is going to get another 90 days now to cut a deal after the president extended the 25 percent tariff rate on that country.

I'll show you a live look right now of how U.S. -- well, we can take a look at how U.S. stock futures are looking right at this moment, all down, all the major indices down ahead of the opening bell.

Let's get to see's Kevin Liptak. He's at the White House. And, Kevin, dozens and dozens of countries, it's many different rates and there's now a new deadline for when this is going to kick in, at least for everyone but Canada. What are you hearing there today?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes, and I think it's fair to say that we are now entering an entirely new trade world reimagined by President Trump to his liking. In a lot of cases, these rates are lower than what many countries feared and what President Trump promised, but we are still at historic levels. You know, the overall tariff rate will now be higher than it's been in almost a century. And this is President Trump really realizing the vision that he laid out as a candidate to reimagine how the U.S. exchanges goods with other countries.

Now, the timing here is very important. As you said, the president has offered something of a grace period here. We had originally thought these tariffs would go into effect this past midnight. Now, countries have until next Thursday, August 7th, to renegotiate some of these trade deals and try and get their rates lowered. It also allows customs inspectors more time to adjust to these new rates. Any good that's loaded onto a ship before that date, before next Thursday, and arrives in the U.S. before October 5th, won't be subject to these new rates, which could also put off these higher prices for consumers that many economists have been warning about.

The president laid all of this out in an executive order last night, saying that the U.S. trade deficit was, quote, an unusual and extraordinary threat to the national security and economy of the United States. As you said, the rates start at 10 percent for the countries where the U.S. runs a tape trade surplus. They only go up from there, 15 percent for countries with moderate trade deficits.

Some countries have actually negotiated their own rates through these trade deals, like the E.U, Japan, South Korea, a number of other countries in Asia. Canada has seen its rate increased to 35 percent from 25 percent because the president doesn't think that country's doing enough to curb the flow of fentanyl. Mexico, the president has given this 90 day reprieve as he works with the president, Claudia Sheinbaum, to negotiate a new deal.

The highest rates are actually on some of the world's poorest countries, like Syria and Myanmar.

[07:05:03]

Those countries have rates hovering around 40 percent. The highest rate is actually on Brazil, which is a country the U.S. enjoys a trade surplus with, the president putting that penalty on as a punishment, in his view, of what he calls political persecution of the former president, Jair Bolsonaro, so on an issue that's entirely unrelated to trade. And so those are the numbers.

I think the real question is what the effect will be. And in a lot of ways, it's too early to tell. Some of these higher prices that economists have warning about may not be seen for several months. And while we've seen the markets today in Asia and Europe and the Dow future is now negative for the past several months, investors have really kind of shrugged this off. You've seen markets trading near historic highs.

And I think this is a real question of whether this is all the final word. You know, if history is any example, this may not be the final rate that the president is determined to set for a number of these countries, but what I do think is clear is that we are now entering a completely new era of global trade.

BOLDUAN: That's exactly right. Kevin, great reporting on this, thank you so much, a lot to coming from the White House today. John?

BERMAN: All right. New this morning, former Vice President Kamala Harris, the last Democratic nominee for president, appeared where Stephen Colbert for her first extensive interview since losing the election. It comes after her announcement that she will not run for governor of California. She did leave the door open for something, say, in 2028.

(BEGIN VIDEO CLIP)

STEPHEN COLBERT, HOST, THE LATE NIGHT SHOW WITH STEPHEN COLBERT: I'm hearing like you don't want to be part of the fight anymore?

KAMALA HARRIS, FORMER U.S. VICE PRESIDENT: No. Oh, absolutely not. I'm always going to be part of the fight.

COLBERT: Okay.

HARRIS: That is not going to change. I'm absolutely going to be part of the fight.

COLBERT: Yes.

(END VIDEO CLIP)

BERMAN: All right. CNN Chief Media Analyst Brian Stelter is here with us now.

All right, Brian, you stayed up late. You watched. What came out of this interview?

BRIAN STELTER, CNN CHIEF MEDIA ANALYST: Yes. And number one, she did address her reasoning not to run for governor in California. In some ways, it reminded me of what we used to hear from Republicans, like Donald Trump, for many years, that the institutions are broken, the systems are broken. America is breaking down. Here is what Harris said in that same vein to Colbert.

(BEGIN VIDEO CLIP)

HARRIS: Why is it then when we think we want to improve a system or change it, that we're always on the outside, on bended knee or trying to break down the door? Shouldn't we also be inside the system? Recently, I made the decision that I just -- for now, I don't want to go back in the system. I think it's broken.

(END VIDEO CLIP)

STELTER: The system is broken, she said, talking about, as fragile as the democracy is, our systems would be strong enough to defend our principles, and right now, she said they're not as strong as they need to be.

As she said, John, she left the door wide open for a possible run in 2028. She talked about wanting to travel the country and talked to people without being there transactionally asking for their vote for governor of California.

She will be out there promoting a book in the next couple of months. Her book, 107 Days, was announced yesterday. It's already topping Amazon's bestseller charts thanks to pre-orders. So, there's definitely some interest in what she has to say about last year's campaign.

As for last year's campaign, Colbert set her up to say, I told you so, saying that her claims about Trump on the campaign trail have turned out to be true this year. Of course, that was a softball question. Here's how Harris hit it out of the park.

(BEGIN VIDEO CLIP)

COLBERT: You said he would prosecute his political enemies, he would cut Medicaid, Medicare, he would ignore court orders. He would alienate our allies. He would give massive tax cuts to the rich.

HARRIS: You are correct that I did predict a lot of it. But, Stephen, what I did not predict was the capitulation.

(END VIDEO CLIP)

STELTER: Interesting comment there from Harris. She went on to say, quote, I think there are a lot of people who think they're riding out the storm, meaning the Trump presidency, as an excuse to be feckless. Harris, talking about capitulation, probably referring to universities and big law firms and media companies, although she didn't really elaborate in that answer.

In some ways, the medium was the message. Choosing Colbert for her first interview was the message. CBS recently canceled that show due to financial pressures, but lots of Colbert fans think it was also for political reasons relating to Colbert's outspoken criticism of Trump. So, Harris choosing Colbert for the first interview certainly telling in its own way, John.

BERMAN: Absolutely a lot about positioning here. And any time a politician doesn't rule something out, it's very much in, I will say that.

Brian Stelter, nice to see you this morning. Thank you. STELTER: Yes.

BERMAN: Kate?

BOLDUAN: And even when they rule it out it's been ruled out until they rule it back in.

BERMAN: Exactly.

BOLDUAN: Exactly. Coming up for us though, deadly flooding sweeps across the northeast, drivers stranded, subways flooded in New York City and there is more on the way today.

A new CNN reporting that the Pentagon has scheduled the first major test of President Trump's Golden Dome Defense System, a program that could cost, would cost hundreds of billions of dollars to put into place.

[07:10:01]

And as kids are heading back to school, an alarming new stat just out, a record number of kindergartners missed their required vaccinations last year, as the country faces, as we know, that surge in measles cases.

We'll be right back.

(COMMERCIAL BREAK)

BERMAN: Happening now, millions reeling from heavy storms and flash flooding across the mid-Atlantic and northeast, New Jersey and the New York City metro areas under a state of emergency. The floodwaters came so quickly, it gave people little time to escape.

[07:15:03]

This was Pennsylvania.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: That's our home. That's where we live.

UNIDENTIFIED MALE: We sneak there.

UNIDENTIFIED FEMALE: We haven't had a flood in about five years.

(END VIDEO CLIP)

BERMAN: In Maryland, a young boy drowned when floodwater slept him into a drainage pipe.

The storm continues its dangerous path this morning. Let's find out where it's headed. CNN's Allison Chinchar is with us. What can we expect, Alisson?

ALLISON CHINCHAR, CNN METEOROLOGIST: Well, more rain. And, unfortunately, that's the last thing some of these areas need here. Now, yes, it wasn't just Pennsylvania. It wasn't just Maryland or New York, even places like New Jersey ended up getting some very heavy rain. You can see in the video behind me streets just covered in water, making it very difficult for those folks to actually drive around, especially when you're talking about several inches of water on the streets.

Now, here's a look at where the rain is still ongoing at this hour. You can see it's mostly light showers, so that is a good thing. But we're dealing with a lot of rain showers still across portions of the northeast and even across areas of the Atlantic Coast down towards the Carolinas. That's where you're going to see some of the heavier rain ongoing this morning.

As we widen out the shot, though, again, there are more showers and thunderstorms that are going to be there across other portions of the U.S. I'm going to have Linda kind of push this forward for me so we can kind of see the wider scope there. You can see, again, more showers and thunderstorms out to the west.

The big concern for today is actually going to be across portions of the southeast. That's where the main threat is going to be for the heaviest rain. And we'll kind of push that forward so you can see where we're talking about.

Again, here's a look at the forecast radar. You can see all of these showers and thunderstorms kind of popping up throughout much of the Southeastern U.S., but also in the Central U.S. You can see, and that line is going to continue to move forward here over the coming hours. And even as we go into the weekend, so some of these areas, especially across the southeast, are going to be looking at days and days of heavy rain.

And we do have an excessive outlook for rainfall across much of the southeast. Those yellow pockets that you can keep kind of scattered throughout, that's where the higher threat is going to be for the potential for some flooding. And that does include states like South Carolina and into Georgia and other southeastern cities. That's also where we can expect to see the most amount of rain over the next three days through Sunday. Some of these areas could end up picking up three to even five inches of rain total. The only good news is it will be at least spread out over the course of several days.

BERMAN: All right. Allison Chinchar, thank you very much for that, obviously monitoring that ongoing threat.

This morning, senior U.S. officials inside Gaza. President Trump's Envoy, Steve Witkoff, and Ambassador Mike Huckabee, what they're seeing and what new efforts might be made to end the starvation there.

And then a murder suspect in her chair. A barber reveals what went through her head and in front of her eyes when a manhunt for a double murder suspect came to an end.

(COMMERCIAL BREAK)

[07:20:00]

BOLDUAN: The NFL kicked off preseason with a moment of silence to honor the four victims killed in Monday's mass shooting at the office of the league's New York City headquarters this week, a mass shooting where the NFL was believed to be the intended target.

CNN's Andy Scholes has much more on this. And what was that like?

ANDY SCHOLES, CNN SPORTS ANCHOR: You know, Kate, the Hall of Fame game, it's always, you know, the celebration marking the start of a new NFL season, but it did start on a somber note last night before kickoff between the Chargers and the Lions. The league holding a moment of silence for the four people who lost their lives in the shooting.

Now, NFL Commissioner Roger Goodell, he stayed back in New York to attend the funeral of Police Officer Didarul Islam, who was killed in the shooting, in an interview on the broadcast, Goodell, while he called the shooting an attack on our way of life.

(BEGIN VIDEO CLIP)

ROGER GOODELL, NFL COMMISSIONER: Remember, this attack is far more than on several individuals. This is an attack on humanity. This is an attack on our communities. This is an attack on New York. This is attack on our way of life. And all of us have to do more and make sure that we're doing everything to get help to people who need help and also to take the necessary precautions.

(END VIDEO CLIP)

SCHOLES: Now, as for the Hall of Fame game between the Chargers and the Lions, the former third overall pick, Trey Lance, starting for the Chargers. He tries to win the backup job for L.A. And they looked pretty good, Lance completing 13 of his 20 passes for 120 yards and two touchdowns. The Lions, meanwhile, they had five turnovers in the game. L.A. would win this one big, 34-7.

Last night, we did see the debut of the new virtual first down measurement system. So the chains, they're not going to be coming out to measure first downs anymore. It's going to be this virtual video showing if a ball is a first down or not. Now, the chain gang, they will still be on the sideline like normal, but they're only going to come out on the field as a backup.

All right, and, finally, it was a crazy major league baseball trade deadline with 50 trades happening in the 31 hours leading up to the deadline. The biggest was the Astros getting Carlos Correa back from the Twins for a Minor Leaguer. Correa going back to the Stros where he spent the first seven years of his career winning a title in 2017. He's going to play third base now for Houston.

And you got a feel for Twins fans. They were in the postseason just two years ago, but have now completely bailed on the team, making cost-cutting move after cost-cutting move. And, Kate, that's one of the reasons I'm so happy to be an Astros fan this morning because we got owner Jim Crane, who's always making shrewd big time moves, keeping the Astros in contention year-after-year.

BOLDUAN: There is that. That is true. It's good to see, Andy. Thank you so much.

SCHOLES: All right.

BOLDUAN: Coming up still for us, we are monitoring the markets, market futures to be specific, at this moment, as Wall Street reacts to the latest tariff rollout from President Trump, all pointing down right now. How the world is also responding to the tariff moves this morning.

And Justin Timberlake revealing that what he calls a debilitating diagnosis.

We'll be right back.

(COMMERCIAL BREAK)

[07:25:00]

BERMAN: All right. The breaking news, investors around the world reacting to the president's new tariff plan, which is set to go into effect next week, probably. You can see Asia markets here down sharply. World leaders are reacting as well.

Let's get right to CNN's Marc Stewart live in Beijing with the latest. I'm looking at some of this red here, Marc. What do you see?

MARC STEWART, CNN INTERNATIONAL CORRESPONDENT: Yes. Hi, John. You know, when it comes to the markets, I have this mantra. It's not just the numbers, it's the narrative. And the storyline that we are seeing so far today is that the world is not happy about these tariff announcements.

Let's start where I am here in Asia. All of the major indexes saw some declines. That includes South Korea, that includes Japan, that includes Hong Kong. And then if we move over to Europe, where trading is now underway, we are seeing declines there in Germany, in France as well as the U.K.

And then when markets open in about two hours from now in the United States some challenges likely ahead.

[07:30:00]

We are seeing declines in futures. That includes the S&P 500.