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Trump Defends Pardoning January 6th Rioters; Trump Rolls Out Deportation-Focused Immigration Policies; Trump Indicates He's Open To New Sanctions On Russia; Israel Launches "Operation Iron Wall" In West Bank; Threat Of Trump Tariffs Looms Over Global Businesses. Aired 12- 12:45a ET

Aired January 22, 2025 - 00:00   ET

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


[00:00:05]

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: The controversy over insurrectionists now patriots.

I'm John Vause. Ahead here on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They've served years in jail, and murderers don't even go to jail on this country.

(END VIDEO CLIP)

VAUSE: Outrage and concern over President Trump's blanket pardons for rioters who stormed the Capitol, and what it means for the rule of law.

Praying with the president for a little compassion.

(BEGIN VIDEO CLIP)

BISHOP MARIANN EDGAR BUDDE, WASHINGTON NATIONAL CATHEDRAL: I ask you to have mercy upon the people in our country who are scared now.

(END VIDEO CLIP)

VAUSE: At the traditional Interfaith Church Service in Washington, a direct appeal to Donald Trump for some empathy and understanding for those he vilified during the campaign.

And in Gaza, day four of a delicate ceasefire is holding while violence now flares in the West Bank. The Israeli prime minister announcing a major military operation to eradicate terrorism in the Palestinian city of Jenin.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause.

VAUSE: For many of his most loyal MAGA supporters, the U.S. president sweeping mass pardons for nearly 1600 protesters who stormed the Capitol four years ago was the fulfillment of a major campaign promise. The writing of a grave injustice. But the move has been roundly criticized by former prosecutors, legal scholars and those who survived the insurrection.

And on his first full day back in the White House, Donald Trump defended the pardons, saying the rioters are patriots who have served years in disgusting prisons. The president also commuted sentences for the leaders of two far-right extremist groups. Already Stewart Rhodes from the Oath Keepers militia is a free man. He was serving 18 years for seditious conspiracy and other felonies for trying to prevent the transfer of power to Joe Biden after the 2020 election.

Trump adviser Elon Musk has warned the new administration might prosecute officials who slow down additional inmate releases. Many critics believe the mass pardons could have far-reaching implications for the rule of law.

(BEGIN VIDEO CLIP)

PETER ALEXANDER, NBC NEWS WHITE HOUSE CORRESPONDENT: Mr. President, you're a president who has long said you back the blue. But aren't you sending the message that assaulting officers is OK with these pardons?

TRUMP: No, the opposite. In fact, I'm going to be letting two officers from Washington Police, D.C. I believe they're from D.C., but I just approved it. They were arrested, put in jail for five years because they went after an illegal. I am the friend of police. More than any president that's ever been in this office.

(END VIDEO CLIP)

VAUSE: All the latest developments now from CNN's chief legal affairs correspondent, Paula Reid.

(BEGIN VIDEOTAPE)

TRUMP: We hope they come out tonight, frankly.

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT (voice-over): In one fell swoop, President Trump ended all of the 1600 cases stemming from January 6th.

TRUMP: So this is January 6th. And these are the hostages for a pardon. Full pardon.

REID: Among those pardoned, many of the most violent offenders, including Patrick McCaughey, who assaulted Metro Police Officer Daniel Hodges with a police shield in the tunnel of the Capitol. Robert Palmer threw a fire extinguisher at a police officer and attacked police with a wooden plank and pole. Kyle Fitzsimons, accused of committing five assaults against law enforcement over an approximately five-minute span.

Peter Schwartz, who threw a folding chair at law enforcement and repeatedly used pepper spray on police. Enrique Tarrio, a former leader of the Proud Boys who is convicted on the most serious charge seditious conspiracy for his role in directing the violence that day from afar. He was one and a half years into his 22-year sentence.

Tarrio praising Trump for the pardon in an interview with right-wing host Alex Jones.

ENRIQUE TARRIO, FORMER PROUD BOYS LEADER: I had no doubt he was going to release us. He gave me my life back. 22 years is not a short sentence. That's the rest of my life.

REID: Trump also commuted the sentences of 14 defendants. Those cases are being reviewed and they still could get pardons, including Stewart Rhodes, leader of the far-right Oath Keepers, who prosecutors said called for a bloody revolution to keep Trump in power. He had his 18- year sentence commuted and was seen here getting out of prison Monday evening.

At least 180 of those pardoned Monday by Trump were charged with assault with a deadly weapon. Back in 2021 Trump denounced the protesters.

TRUMP: Those who engaged in the attacks last week will be brought to justice.

REID: But on the campaign trail, he vowed to pardon them.

TRUMP: I will sign their pardons on day one.

REID: Though he and others suggested the pardons would be limited to nonviolent offenders. His action went farther than many including his GOP allies were expecting.

[00:05:01]

SEN. THOM TILLIS (R-NC): I just can't agree. It was surprising to me that it was a blanket pardon.

REID: But perhaps the strongest rebuke came from former officer Michael Fanone who was attacked during the riot.

MICHAEL FANONE, FORMER WASHINGTON, D.C. POLICE OFFICER: Six individuals, who assaulted me as I did my job on January 6th, as did hundreds of other law enforcement officers, will now walk free.

REID (on-camera): Now in addition to those who received a commutation or a pardon, there's a third group, people who had cases that were still pending. President Trump has ordered that those cases are to be dismissed, but a judge has to sign off on each dismissal. So this could take a little while, as some judges will likely they're going to want to go on the record and weigh in on this historic decision.

Paula Reid, CNN. Washington.

(END VIDEOTAPE)

VAUSE: Andrew McCabe is a CNN senior law enforcement analyst and former deputy director of the FBI. He joins us this hour from Washington.

Andrew, thank you for taking the time to speak with us.

ANDREW MCCABE, CNN SENIOR LAW ENFORCEMENT ANALYST: Oh, thanks very much for having me on.

VAUSE: OK. So memory often fades over time, especially in an age of disinformation and misinformation. So here's a reminder of what actually happened January 6th, 2021.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're trying to hold the upper deck. We are trying to hold the upper deck now. We need to lock the doors of the Capitol. I need full support.

(END VIDEO CLIP)

VAUSE: Only about a third of the protesters or rioters were actually charged, mostly with offenses like assault or interference with law enforcement officers, or trespassing, disrupting Congress, theft. No one was given the death penalty. So is there any legal basis here that the punishments they received was excessive?

MCCABE: No, no, John, there's no legal basis for that. And there's no factual basis for it. I'm really glad that you began with the piece that you did, because today, of all days, I think it's important for people to remember that these pardons have nothing to do with what actually happened that day. We know what happened. You just showed video of it. There was a violent mob that attacked our Capitol in an effort to stop the peaceful transfer of power.

So the fact that these people have now been let off the hook doesn't change those facts. The facts are also perfectly clear about who received what types of crimes. Only about a third of the people were even charged with felonies. Most of the others were charged with misdemeanors, and those folks served very, very little, if any jail time whatsoever.

The people who experienced longer sentences were those who went to trial on serious felonies like assaulting police officers and invading the Capitol, or committing seditious conspiracy against the United States government and those folks were sentenced within the law, right? We have laws in this country that determine what sort of sentences go along with criminal violations. That's how those sentences were determined.

It wasn't some political conspiracy to hurt Donald Trump or his supporters. It's simply an application of the law to the facts. And that's what we got.

VAUSE: Well, President Trump on Tuesday explained why he disagreed with his own vice president on granting sweeping pardons. Here he is.

(BEGIN VIDEO CLIP)

ALEXANDER: I want to ask you what the vice president, J.D. Vance, he said, if -- this is a week ago. He said, if you committed violence on January 6th, obviously you should not be pardoned. Why is your vice president wrong? TRUMP: Well, only for one reason. They've been -- they've served years

in jail. They should not have served -- excuse me. And they've served years in jail. And murderers don't even go to jail in this country.

(END VIDEO CLIP)

VAUSE: Under the Constitution, the president has a broad but limited power to grant reprieves and pardons. According to the Supreme Court, the pardon power is intended as a tool for justice and mercy, an act of grace, and to further the public welfare. A federal court has ruled that pardons must be in the public interest.

So have Presidents Trump and Biden here simply abused or at the very least misused the power of the pardon?

MCCABE: You know, the use of the pardon by outgoing presidents often prompts questions and review about the appropriateness of the use of the pardon. This is not new. I mean, even in my time as an adult watching these things just from the sidelines, everyone from President Clinton on forward has issued pardons that lots of people object to it. So I don't think that part is -- it's not good, but it's also not new.

But what you're seeing here with the indiscriminate pardon of 1600 people in one fell swoop, all of whom participated to some degree in an attack on our capital in an effort to overthrow the results of a free and fair election, we've never seen anything like that before. And you can point to President Clinton's use of the pardon, President Bush's use of the pardon, Joe Biden's use of the pardon, and point out individuals or very small groups of people that maybe shouldn't have received those.

[00:10:12]

But we've never seen anything quite on the scale of what Donald Trump did yesterday.

VAUSE: Well, here's reaction from the speaker of the House as well as leader in the Senate, both Republicans, the tough on crime, lock them up, law and order party. Listen to this.

(BEGIN VIDEO CLIP)

REP. MIKE JOHNSON (R-LA): I haven't had an opportunity to review that because I've been so busy. So I'll get back to you on it.

SEN. JOHN THUNE (R-SD): I've said what I've said before and that is we're not looking backwards, we're looking forward.

(END VIDEO CLIP)

VAUSE: Isn't looking back kind of a crucial factor to ensure laws haven't been broken or power is not abused? How dangerous is this belief that we seem to be at that if your guys do it, it's OK, all bets are off, if the other guys do it, then lock them up? MCCABE: Yes, it's incredibly dangerous. And yes, you're right. Looking

back is the fundamental element of accountability, right? That's how we think about accountability in a free and fair democracy. And if we -- when we reduce criminal accountability to some sort of tit-for-tat political fair play retribution, we've really lost our center in terms of how we think about the rule of law and in this country, the fact that it's supposed to apply to everyone, Republican or Democrat, in the same way.

You know, I think that the speaker is doing what he has to do to get by and ignoring the uncomfortable truth that the leader of his party, the current leader of this country, indiscriminately let 1600 criminals off the hook because what they participated in, what they were convicted for, is certainly uncomfortable for this President Donald Trump because of his own direct involvement in those events.

VAUSE: Andrew, good points to finish on. Thank you for being with us. We really appreciate it.

MCCABE: Thanks.

VAUSE: As part of the inauguration tradition, every newly sworn-in president attends a traditional Interfaith Service at the National Cathedral. And there came a direct appeal to Donald Trump to show mercy, especially for immigrants and members of the LGBTQ community and others who are often vilified during the campaign.

With President Trump and the first family in the front rows, the Episcopal Bishop of Washington, Bishop Mariann Edgar Budde, talked about many of the most vulnerable among us now living in fear for their lives.

(BEGIN VIDEO CLIP)

BUDDE: Let me make one final plea, Mr. President. Millions have put their trust in you. And as you told the nation yesterday, you have felt the providential hand of a loving God.

In the name of our God, I ask you to have mercy upon the people in our country who are scared now.

(END VIDEO CLIP)

VAUSE: After the service, Trump's response to all of that was, quote, "Not too exciting," and, "They could do much better."

Meantime, the Trump administration now giving federal immigration officers more authority to arrest undocumented immigrants and putting in place new policies that would fast track the deportation process.

CNN's Priscilla Alvarez has details.

(BEGIN VIDEOTAPE)

PRISCILLA ALVAREZ, CNN CORRESPONDENT: President Donald Trump's deportation plans are starting to take shape after a spate of key policies that were released on Tuesday. They included, for example, a new directive that allows Immigration and Customs Enforcement to arrest people or take enforcement actions in or near what are called sensitive areas. That is, for example, churches, schools, hospitals.

That is a departure from longstanding policy that kept agents from working in those areas. Immigrant advocates, of course, have said and warned that doing so could stoke fear within immigrant communities and have ripple effects. But in addition to that, on Tuesday, the Trump administration also releasing a regulation that expands a fast track deportation procedure, essentially casting a wider net of undocumented immigrants who would be eligible for that procedure that cannot prove that they have been living in the United States continuously for two years.

Taken together, all of these policies start to provide a clearer picture as to how the Trump administration plans to embark on its deportation pledge. Now, in addition to that, the White House borders czar Tom Homan telling our Dana Bash that targeted operations are already happening, and also noting that if other undocumented immigrants are encountered over the course of those operations, then they too could be taken into detention.

So all of this starting to ramp up with these policies. And as these operations are underway, as, again, the Trump administration tries to make do on the president's campaign promise.

Back to you.

(END VIDEOTAPE)

VAUSE: Well, during the first term of the Trump administration, Presidents Trump and Putin seem like best buddies. When we come back, that relationship could soon be put to the test.

[00:15:05]

Also ahead, as Gaza wakes up to a fourth day of the ceasefire, Palestinians in the West Bank are facing escalating Israeli violence. Details of Israel's new military offensive just ahead.

(COMMERCIAL BREAK)

VAUSE: Well comments from the U.S. president Tuesday are raising questions about what was once seen as a close and friendly relationship with Russia's president. Donald Trump accused Vladimir Putin of ruining Russia by continuing with the war in Ukraine, and Trump also indicated he would consider new sanctions on Moscow.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: Sir, you've called for a ceasefire in Ukraine. If Vladimir Putin doesn't come to the table to negotiate with you, will you put additional sanctions on Russia?

TRUMP: Sounds likely.

UNIDENTIFIED REPORTER: And do you think that the war should be frozen currently along the --

TRUMP: The war should have never started. If you had a competent president, which you didn't, the war wouldn't have happened.

(END VIDEO CLIP)

VAUSE: Well, for more on Russia's ties with the United States, as well as Russia's new best friend, China, here's CNN's Fred Pleitgen.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Just hours after President Donald Trump's inauguration, Kremlin controlled TV already poking fun at the new U.S. leader and Trump's pledge to end the war in Ukraine on day one.

In the U.S., they call the expression stop the war in 24 hours a bright example of Trump's hyperbole, the host says. But Trump himself says he intends to keep his promise and that his meeting with Putin is soon ahead.

The tone on state TV very different than before the inauguration, like in December when Trump had criticized the Biden administration's decision to allow Ukraine to use U.S. supplied ATACMS missiles to fire into Russia.

More absolutely sensational news, the anchor said then. Donald Trump condemned the use of ATACMS for attacks on the territory of Russia.

Shortly after taking office, President Trump, who claims to have good relations with Putin, appeared surprisingly critical of the Russian leader.

TRUMP: Zelenskyy wants to make a deal. I don't know if Putin does. He might not. I don't know. He should make a deal. I think he's destroying Russia by not making a deal. I think Russia is going to be in big trouble.

PLEITGEN: But Putin, unfazed, showing whom he considers to be his most important ally and friend, Chinese leader Xi Jinping even after Xi took the rare step of calling Trump shortly before the inauguration. Xi and Putin now making clear in a virtual summit China and Russia will stand together no matter what Trump does.

These connections are self-sufficient and independent of domestic political factors and the current global situation, Putin said.

[00:20:00]

This year, I am ready together with you to elevate Chinese-Russian relations to a new level, Xi added. To counter external uncertainties by preserving stability and resilience of Chinese-Russian relations.

As Ukraine continues to lose ground in many sectors of the vast front line, Ukraine's president, speaking at the Davos economic forum, appeared concerned about whether Kyiv's allies can achieve what Ukraine would consider a just peace.

If there are weak guarantees, uncertainty, only words, then you will only get words from Russia and they will come back with war again.

Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

VAUSE: Turkey is now observing a National Day of Mourning for more than 100 people killed and hurt in a fire at a ski resort hotel, which was filled with families visiting there on school holidays. Witnesses say some people jumped from their windows, others tied bedsheets together, to escape the flames.

(BEGIN VIDEO CLIP)

OMER SAKRAK, WITNESS (through translator): We woke up to screaming. We woke up to shouting. We could only see smoke in the building at first. Then when the flames appeared, people all of a sudden started to jump with panic. They tried to climb down using bedsheets. The bedsheets ripped as one person was trying to climb down.

MEVLUT OZER, WITNESS (through translator): There was nothing we could do. There were some extra beds on the first floor, so we threw those so that they fall on soft ground if they jump. Finally, we saw the ones on the higher floors, but there was nothing we could do. We just watched. All we could do was cry.

(END VIDEO CLIP)

VAUSE: The cause of the fire is still being investigated. Nine people have been detained so far.

Israel launched a new military operation in the West Bank days after the ceasefire in Gaza went into effect. The Israeli military killed at least 10 Palestinians, including one child, in the city of Jenin Tuesday. Operation Iron Wall, as it's being called, is the latest escalation of Israeli violence in the area. Israeli Prime Minister Benjamin Netanyahu says it's intended to, quote, "eradicate terrorism."

Meanwhile, as the Gaza ceasefire enters its fourth day, hundreds of humanitarian trucks continue to make their way into the war-ravaged enclave, bringing much needed aid.

CNN's Jeremy Diamond is in Tel Aviv with the latest.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Three days into the ceasefire in Gaza the agreement between Israel and Hamas does appear to be holding up. The people of Gaza are finally finding a renewed sense of safety after more than 15 months of war. Hundreds of trucks loaded with much needed aid have begun entering the Gaza Strip every single day, and Hamas appears poised to release the next four Israeli hostages this coming Saturday. But there are already questions about how long this agreement will

actually hold up, and whether Israel and Hamas can actually get out of that six-week ceasefire phase one of this agreement, and into a much more enduring ceasefire, perhaps even an end to the war and the return of all the remaining Israeli hostages.

You heard President Trump saying that he is not confident that Israel and Hamas will get to phases two or three of this agreement. And in Israel, there are already voices calling for the Israeli prime minister to go back to the war in Gaza as soon as those six weeks are up.

Now, as the prime minister is facing that pressure largely from the right-wing of his government, he and the Israeli military are instead turning their attention to the West Bank, ramping up military operations there, launching what's being described as a largescale military operation that has already killed at least seven Palestinians.

This operation comes amid the release of Palestinian prisoners inside the West Bank and as Israeli settlers have been carrying out attacks against Palestinian civilians in the occupied West Bank, including setting fire to vehicles there.

Meanwhile, Israel's top general, General Herzi Halevi, he has submitted his resignation to the Israeli prime minister, citing his responsibility for the Israeli military's failures on October 7th. This resignation will be effective early March, and it marks the highest profile resignation in Israel stemming from the failures of October 7th.

And interestingly, he is also saying that he believes a military investigation into the failures of the 7th are not sufficient. He says that there should be some kind of an investigative committee to look into the broad range of failures that led up to the events of that day. Notably, the Israeli prime minister, who has faced these calls before for a state commission of inquiry, he is continuing to resist those calls and unlike Halevi, he has not taken responsibility for the failures of October 7th.

Jeremy Diamond, CNN, Tel Aviv.

(END VIDEOTAPE)

VAUSE: To New York now and Danny Danon, Israel's U.N. ambassador.

Mr. Ambassador, thank you for being with us.

DANNY DANON, ISRAELI AMBASSADOR TO THE UNITED NATIONS: Thank you for having me again, John.

VAUSE: Well, the ceasefire in Gaza, it's just a few days old. And now Israeli military operations seem to be ramping up in the West Bank.

[00:25:01] The prime minister making the announcement, he posted this on social media, "Under the direction of the Political Security Cabinet, the IDF, Shin Bet and the Israel police today launched a large scale and significant military operation to eradicate terrorism in Jenin, Iron Wall."

Now, should this be seen in the context of an ongoing military operation which began in Gaza in October or October 8th? Or is it possible to, you know, eradicate terrorism in this operation by using brute force alone?

DANON: Well, John, despite the ceasefire we have with Hamas, unfortunately, it's not quiet. You know, we saw the stabbing in Tel Aviv a few hours ago, and the fact that we still have threats coming from Judea and Samaria, the so-called West Bank, you know, we are aware of weapons that were smuggled into Judea and Samaria from Jordan and in Syria, into Israel. And that's a threat.

So what we are doing now, we are neutralizing that threat by taking action. And I want to remind you and the audience that the Palestinian Authority themselves were trying to do it a few weeks ago in the same city of Jenin. Unfortunately, they don't have the means and capabilities. We are much stronger. That's why today we are trying to neutralize the same threats.

VAUSE: We'll go to Washington now. President Trump's choice for U.S. ambassador to Israel, Elise Stefanik -- Stefanik appeared before a Senate confirmation hearing. Here's part of it.

(BEGIN VIDEO CLIP)

SEN. CHRIS VAN HOLLEN (D-MD): I'm rarely surprised by answers in my office, but I did ask you whether you subscribed to the views of Finance Minister Smotrich who --

ELISE STEFANIK, NOMINEE FOR U.S. AMBASSADOR TO ISRAEL: Of who? I'm sorry --

VAN HOLLEN: Smotrich. This is the Israeli Finance Minister Smotrich, and the former National Security Minister Ben-Gvir, who believe that Israel has a biblical right to the entire West Bank. And in that conversation, you told me that, yes, you shared that view. Is that your view today?

STEFANIK: Yes.

(END VIDEO CLIP)

VAUSE: So the biblical right that she's talking about, it's kind of part of the idea of greater Israel or Eretz Israel, which would include modern-day Israel, the West Bank, Gaza, Jordan, Syria, Iraq, Lebanon, Egypt and Saudi Arabia. And in the months since October 7th, Israeli forces have moved deeper into southern Lebanon as well as southern Syria, mostly as a security buffer zone.

Historically, Israel always trades land for peace. They've done it before with Egypt. Israel also disengaged from Gaza 20 years ago, as well as withdrawing from Syria not long after that. But, you know, we're now living in a different time. What is Israel planning to do with any new territory, which it's been holding since October 7th?

DANON: Let's make it clear. We are not an empire. We are not in the business of acquiring land. We are defending ourselves. We are defending our border. We have no presumption to take land from anyone. But when you speak about Judea and Samaria, it's true. It's our biblical land. And if you speak about the future, I think we recognize the fact that you have Palestinians who live in Judea and Samaria and will stay there.

But you can say the same about the Jews who live in Judea and Samaria. About half a million Jews. They also will stay there. We're going to have to live together on that part of the land. That will be the future.

And I want to welcome Ambassador Elise Stefanik. I think today she demonstrated moral clarity and we are looking forward for her arrival to the United Nations to support our fight against antisemitism.

VAUSE: Well, in the past 15 months, you know, Israel is now a much stronger and secure country, at least militarily. At the same time, normalizing diplomatic relations in the region, especially with Saudi Arabia have been set back, what, years or maybe longer. Does that actually matter to most Israelis? You know, they always have held this belief that they're held to a double standard by the international community.

Is there sort of a, you know, an abandonment of that idea of, you know, diplomatic acceptance and just relying on military alone for its security?

DANON: Well, we are a peaceful nation. We celebrated the Abraham Accords. You know, we are very proud of the relationship we have with Egypt, Jordan, the Emiratis and Morocco, and hopefully soon also with the Saudis. You know, October 7th was brought upon us. We had to defend ourselves. And I agree with you, John. It pushed back the negotiations with the Saudis and other countries in the region. But I believe we will come back. I'm sure President Trump and the new administration will support these initiatives, and hopefully we will see more countries joining the Abraham Accords.

VAUSE: Mr. Ambassador, thank you very much. (Speaking in foreign language).

DANON: Thank you.

VAUSE: When Donald Trump hit Chinese exports with tariffs during his first term, many Chinese businesses moved to Mexico. But what to do now that Mexico is also a tariff target?

(COMMERCIAL BREAK)

[00:32:14]

VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.

U.S. President Donald Trump threatening more tariffs as soon as next week, this time on China.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're talking about a -- a tariff of 10 percent on China, based on the fact that they're sending fentanyl to Mexico and Canada.

UNIDENTIFIED MALE: How soon? How soon on those tariffs?

TRUMP: Probably February 1st is the date we're looking at.

(END VIDEO CLIP)

VAUSE: Just a day earlier, Donald Trump said a 25 percent tariff on goods from Mexico and Canada could go in effect by February 1.

During his campaign, he promised tariffs as high as 60 percent on all goods imported from China. If Trump follows through, it means he'll be imposing tariffs on America's three largest trading partners.

Wall Street, though, cheering the fact that these tariffs will be delayed until next month. The Dow rose more than 500 points Tuesday, closing above 44,000.

And one of Donald Trump's first executive actions on Monday called for a new review of the trade agreement between the United States, Mexico and Canada, the USMCA. That's a deal he signed in his first term.

But his directive did not specifically call for an increase in tariffs.

Businesses, though, in other countries are now responding to the economic uncertainty all of this is creating, as CNN's David Culver reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is where we assemble everything.

DAVID CULVER, CNN INTERNATIONAL CORRESPONDENT: We're getting a firsthand look at what some are calling an industrial Chinatown.

UNIDENTIFIED MALE: Everything we make, we produce here, is going to end up in a major furnishing store in the U.S.

CULVER: We're in Mexico. This is an hour outside Monterrey, Mexico, about 160 miles from the U.S. Southern border.

CULVER (voice-over): This region, Mexico's so-called industrial capital, ideal for companies like China's Kuka Home Furnishing, looking to reach U.S. customers.

UNIDENTIFIED MALE: We, as American consumers, want everything immediately. So, OK, let's -- let's open up shop in Mexico.

CULVER (voice-over): While Kuka Home says their move was motivated by shorter supply chains, a surge of other Chinese companies flooded Mexico to dodge hefty tariffs President Trump levied during his first term.

CESAR SANTOS, PRESIDENT, HOFUSAN INDUSTRIAL PARK: Well, actually, that -- that helped us, because when they put a tariff there in China, then those companies came to -- to us.

CULVER: And are they still here?

SANTOS: Yes, of course. They're growing.

CULVER: The question is going to be what happens if tariffs are applied to Mexico. That's something President Trump has suggested he might do --

CULVER (voice-over): -- threatening to hit the U.S.'s Southern neighbor and largest trading partner with a 25 percent tariff on exports to the U.S.

UNIDENTIFIED MALE: I mean, the 25 percent tariff on -- on Mexico puts me out of business. Simply put, it puts me out of business.

CULVER (voice-over): And that, in turn, would leave many here out of work.

CULVER: If you look around me, you can see, at this factory in particular, the vast majority of people who work here are from Mexico.

[00:35:05]

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

CULVER: For now, he's comfortable staying here in Mexico, because he has a job. He has opportunity. You don't have that, he said, you have to look for other ways to sustain your family. And he goes, for some, that means migrating to places like the U.S.

CULVER (voice-over): The uncertainty of the Trump tariff threat has Kuka Home pausing expansion plans here and leaves other Chinese companies questioning their next move.

CULVER: This is your your -- your Spanish language books.

ZHANG JIANQIU, ENGINEER: Yes.

CULVER: Chinese to Spanish.

CULVER (voice-over): Zhang Jianqiu is in Mexico scouting future opportunities for his Chinese employer.

CULVER: With a 25 percent tariff, is it feasible?

ZHANG: I think most Chinese companies, they are waiting. They are watching. And then they will make the final decision.

CULVER (voice-over): Some Chinese companies, though, are full steam ahead with expanding their footprint to be within reach of their U.S. customers.

SANTOS: This is called the Hofusan Industrial Park.

CULVER (voice-over): Inside Hofusan?

SANTOS: Basically, a hundred percent of the companies are Chinese companies here.

CULVER (voice-over): Some 40 companies making home appliances, auto parts, light bulbs, medical supplies, you name it, all destined for the U.S.

Here, the lines between what's Mexican and what's Chinese quickly become blurred.

CULVER: You have street signs. You can see the Chinese flag there.

SANTOS: The Chinese flag, yes. It's a restaurant. It's a very nice Chinese restaurant.

CULVER: Chinese restaurant?

SANTOS: Chinese restaurant, yes.

UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)

CULVER: And as I look at the name, your name --

SANTOS: Yes.

CULVER: -- is mixed into this.

SANTOS: Yes. It's a Holly (ph), Fulton, and Santos.

CULVER: These two shareholders, Holly --

SANTOS: Chinese.

CULVER (voice-over): Hofusan is expanding rapidly, with plans to eventually cover some 2,000 acres. But that's not been enough for the demand.

RAMIRO GONZALEZ, DEVELOPER: This area is just next to Monterrey. It's called Juarez.

CULVER (voice-over): Developer Ramiro Gonzalez is now building another so-called industrial Chinatown.

CULVER: You've got your name in Spanish and then Chinese.

GONZALEZ: Yes, yes. I'm really happy, because the Chinese people call me Talong. Talong means big dragon. Basically, this is a multi-tenant building.

CULVER (voice-over): But if Trump's proposed tariffs on Mexico make the U.S. market too expensive, some Chinese companies are confident that they've still got other options.

SANTOS: We can sell to Europe. We can sell to Latin America. And even Mexico. Mexico is a big market, too.

CULVER (voice-over): Yet, despite the potential loss Trump's tariffs might cause him, Cesar Santos believes widening cartel violence is a bigger threat to business here in Mexico, so much so that he's given up prime real estate to have a police presence nearby.

CULVER: La Fuerza Civil.

SANTOS: Fuerza Civil. Yes.

CULVER: That's on your property?

SANTOS: Fuerza Civil is in our -- Yes, we donate that area. Yes, in the property.

CULVER (voice-over): It's a big part of why he actually supports the man behind the tariffs.

SANTOS: He's strong.

CULVER (voice-over): President Trump.

SANTOS: Actually, I like him for all the -- the issues we have in terms of all the criminal gangs and everything like that, the drugs. So, we need the help of people like him to stop that.

CULVER: And it was that last point there that we actually made note of while we were traveling through that region. And that is, despite the potential negative impact on the economy down there in Monterrey, Mexico, many of the folks we came across are actually supporters of President Trump.

The engineer from China, he says he looks up to President Trump as a businessman. And then you heard Cesar Santos there say that he actually is looking to President Trump for national security. Mexico's national security. Hoping to eradicate the cartel violence that has penetrated much of that country.

Cesar Santos was even here in Washington to attend the inauguration this week.

David Culver, CNN, Washington.

(END VIDEOTAPE)

VAUSE: We'll take a short pause, and we'll be back in a moment. You're watching CNN.

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[00:41:11]

VAUSE: Parts of the U.S. Gulf Coast are dealing with a once-in-a- generation winter storm, which has brought historic levels of snowfall.

New Orleans' iconic Bourbon Street was covered in snow, with Southern Louisiana under the first ever blizzard warning issued for anywhere along the Gulf Coast.

The governors of Florida, Louisiana, Georgia, Alabama, and Mississippi have declared states of emergency, urging drivers to stay off the icy and hazardous roads.

More than 2,000 flights in and out of the United States have been canceled.

The nominees for the best of the worst in cinema are out, and, appropriately, the "Joker" sequel led the pack with a total of seven Razzies, including Worst Actor and Actress for Joaquin Phoenix and Lady Gaga.

Not far behind was "Megalopolis," directed by Hollywood legend Francis Ford Coppola, with six Razzies, including Worst Picture, Screenplay, Director, Cast, and Supporting Actor Shia LaBeouf.

And "Madame Web's" six Razzie nominations include Worst Picture, Director, Screenplay, and Worst Actress, Dakota Johnson.

The so-called winners are announced the day before the Oscars.

I'm John Vause. I'll be back at the top of the hour with more CNN NEWSROOM, but in the meantime, WORLD SPORT starts after a short break. See you soon. Top of the hour, 18 minutes.

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