Return to Transcripts main page

CNN Newsroom

Trump Slaps 25 Percent Tariffs On Canada And Mexico, 20 Percent On China; U.S. Pauses Ukraine Aid; Stormy Weather Threatens Mardi Gras; Pope Francis Suffers Setback With New Breathing Problems. Aired 5-5:30a ET

Aired March 04, 2025 - 05:00   ET

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

[05:00:35]

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You know, they're all set.

DOUG FORD, PREMIER OF ONTARIO: They need to feel the pain. They want to come at us hard. We're going to come back twice as hard.

TRUMP: You should be more appreciative because this country has stuck with them. I believe that Russia wants to make a deal.

REP. DAN GOLDMAN (D-NY): It is anti-democratic. It is anti-American, and it's appalling. Basically, he wants Ukraine to cave.

UNIDENTIFIED FEMALE: We are a city of carnival. You don't just cancel that easily. Zulu will start to roll at 6:30 a.m., so if you want to have your coffee and your egg biscuit on the parade route, come on out.

(END VIDEO CLIP)

ANNOUNCER: Live from London, this is CNN NEWSROOM with Christina Macfarlane.

CHRISTINA MACFARLANE, CNN ANCHOR: Hello. And a very warm welcome to our viewers joining us from the United States and all around the world. I'm Christina Macfarlane. It's Tuesday, March 4th. It's 10:00 a.m. here in London, 4:00 a.m. in Washington, where a new round of tariffs announced by Donald Trump is setting off a wave of retaliation from top U.S. trading partners.

President Trump slapped Canada and Mexico with 25 percent levies starting at midnight last night. Tariffs on China have gone from 10 percent to 20 percent.

Here's the president explaining his decision.

(BEGIN VIDEO CLIP)

TRUMP: They can't come in and steal our money and steal our jobs and take our factories and take our businesses and expect not to be punished. And they're being punished by tariffs.

(END VIDEO CLIP)

MACFARLANE: Well, Beijing responded with new tariffs on a long list of American goods that followed Canada's announcement of its own retaliatory measures. And leaders there say they're prepared to escalate their response if necessary.

(BEGIN VIDEO CLIP)

FORD: If they want to try to annihilate Ontario. I will do everything, including cut off their energy with a smile on my face. They need to feel the pain. They want to come at us hard. We're going to come back twice as hard.

(END VIDEO CLIP)

MACFARLANE: Well, for a look now how China is handling this response, let's bring in Marc Stewart. He's live for us in Beijing.

Good to see you, Marc.

Well, we expected a strong response, Marc, from China. And they were very swift in retaliating. Just walk us through what they've levied.

MARC STEWART, CNN CORRESPONDENT: Right, Christina. None of this is truly a surprise. In fact, I've been talking to a number of sources who are familiar with both the economic side of things and the diplomatic side of things, and they all said China would soon retaliate. And now here we are, after the United States imposed yet another round of tariffs.

As one person pointed out to me, these tariffs really impact where some of President Trump's most ardent supporters live, the heartland of America, targeting agriculture, targeting farming.

So if we look at where these latest Chinese imposed tariffs, we're looking at a 10 percent tariff.

MACFARLANE: Unfortunately, we have lost Mark Stewart there. We will attempt to get his connection back up again.

But now for now, let's move on. Donald Trump is drawing swift reaction after deciding to pause U.S. military aid to Ukraine. The White House says the move follows the U.S. president's heated clash with Ukrainian President Volodymyr Zelenskyy in the Oval Office on Friday.

Now, officials say Mr. Trump and his aides want an acknowledgment from President Zelenskyy, perhaps even an apology, before moving forward with a rare earth minerals deal or talks about continuing any future aid.

And they make clear the pause will remain in place until Mr. Zelenskyy makes a commitment to seeking peace talks with Russia.

(BEGIN VIDEO CLIP) TRUMP: He said he thinks the war is going to go on for a long time, and he better not be right about that. It should not be that hard a deal to make. It could be made very fast.

Now, maybe somebody doesn't want to make a deal. And if somebody doesn't want to make a deal, I think that person won't be around very long. That person will not be listened to very long, because I believe that Russia wants to make a deal. I believe certainly the people of Ukraine want to make a deal.

(END VIDEO CLIP)

MACFARLANE: Well, the U.S. vice president, who was involved in the Oval Office meeting with President Zelenskyy, gave his own take.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: He showed a clear unwillingness to engage in the peace process that President Trump has said is the policy of the American people and of their president. That's the real breakdown, is I think Zelenskyy wasn't yet there.

[05:05:01]

And I think, frankly, now still isn't there. But I think he'll get there eventually. He has to.

(END VIDEO CLIP)

MACFARLANE: Some officials and analysts warn the pause in aid could have a dire effect on Ukraine's ability to keep up the fight against Russia. Hours before it was announced, President Zelenskyy said he is counting on U.S. support to end the war and again pressed for security guarantees for his country.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): The lack of security guarantees for Ukraine 11 years ago allowed Russia to begin with the occupation of Crimea and the war in Donbas. Later, the absence of security guarantees enabled Russia to launch a full scale invasion. And now, due to the lack of clear security guarantees, Russia is keeping this war ongoing. The whole world sees this, and the whole world acknowledges it.

(END VIDEO CLIP)

MACFARLANE: Well, CNN's Nick Paton Walsh is joining us now live from Kyiv.

And, Nick, there is no doubt this is a hammer blow for Ukraine. I'm sure it's sending shockwaves throughout the country there. What is the reaction you're seeing?

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yeah, I mean, there is still again disbelief. I think Ukrainians frankly, waking up every morning and checking their phones with a sort of drawers here. I mean, we don't have a full clarity as to exactly how immediate this impact has been.

We do have a Ukrainian source suggesting to us that we do not see at this point, an impact in the sharing of military intelligence. Remember, that is utterly vital for Ukraine on the battlefield to get not even real time, but at times delayed feed of what their enemy is doing, mostly from very high end American intelligence gathering equipment. But depending on who you listen to, we are talking about a fifth or a third of Ukraine's aid already stretched.

Remember, they are not running on the amount they would like. And we've been hearing from officials repeatedly that in the months ahead there could be a crunch in ammunition, a sudden drop in what's incoming. Indeed, if this is acted upon immediately.

Now, important to bear in mind that the last time this happened was December 2023, when many Republicans close to Donald Trump held up for about six months aid for Ukraine, about $6 billion worth. Now that's a $60 billion worth. That was utterly key, because I think if you look back now, around about that time, the tide turned for Ukraine on the front lines from them having a not particularly successful counter offensive, yet still having the momentum to now, we've seen a year plus of Russia having the momentum.

So this is not just a about sort of theater on the global stage or pressure. There will be an immediate real impact here, particularly with things like Patriot missile interceptors, which president Zelenskyy has been clear about. They literally count day by day because they're the only way of taking out some of the faster, higher end Russian ballistic missiles fired at Ukraine, often nightly. And were now, of course, into a complex question of what exactly is it that Zelenskyy has to do to get this aid flowing again? Trump has obviously, through his officials, suggested that perhaps a public apology might be necessary. He also says he wants Zelenskyy to commit to peace.

But the real thing we don't know yet is what exactly is the peace that Donald Trump is proposing. We don't have a clear proposal from the Americans. We just hear, it seems, for the desire for the Trump cabinet to seize Zelenskyy somehow commit to that.

And Zelenskyy, I think, is now in a very complex position because the overt signs practically are that the Trump administration is not moving in a friendly direction towards Kyiv. So does he give them what they want and publicly apologize and do the things that they say they want him to do? So sign up to the rare earth minerals deal. He said he's willing to do that and give a full commitment to whatever peace is proposed to him. Does he do that to then later find that that has an impact on morale on the front lines? And indeed, the Trump administration is not acting in Ukraine's favor?

That's the complexity here. The Trump administration perceives peace. It seems, in a very simple binary fashion that it's something they essentially could switch on and bring to Ukraine. Maybe that is the case. Maybe they have an inside track with the Kremlin that suggests that is entirely viable.

But the fear of Ukraine and its European allies is that a rushed or a bad peace feeds into a decade of Russia violating ceasefires and diplomacy. They've been persistent on that, and it is backed up by fact and that that would enable Russia to manipulate this peace, manipulate the Ukrainian military and gain a larger advantage here.

So, an existential moment really here for Ukraine. The front lines will be massively impacted by a deterioration in aid provide. That is potentially something that could happen in the weeks ahead. And we don't know what it is really that president Donald Trump wants Zelenskyy to do practical, concrete terms to switch it back on.

And I think that's what's got many here deeply concerned about how the last two weeks of, frankly, seesawing whiplash, impossible to keep pace with how the -- I think at times the very volatile notion of negotiation and foreign policy that we've seen from the Trump administration is actually playing out in a war here where lives are lost every hour.

MACFARLANER: All right. Nick Paton Walsh from Kyiv, thanks so much, Nick.

Well, the U.S. pause on Ukraine's military aid will likely come up tonight when President Trump addresses a joint session of Congress. Already, lawmakers from both sides of the aisle are reacting to his decision.

(BEGIN VIDEO CLIP)

GOLDMAN: This is the exact opposite of peace through strength. Instead, what it is, is it's another extortion of President Zelenskyy, illegally withholding aid in order to get President Zelenskyy to agree to a minerals deal, which is back payment for all the aid that President Biden had provided. It is anti-democratic. It is anti- American, and it's appalling.

And it is -- it has to stop. And we need Republicans in Congress who understand the importance of democracy abroad, who understand how important it is for our own national security, that we don't let China run wild around the world, which is exactly what will happen if we kowtow to Russia. They need to stand up and say something to Donald Trump to get us back on track.

(END VIDEO CLIP)

MACFARLANE: There's been mixed reaction among Republicans on continuing aid to Ukraine -- Ukraine. Some say its time to try and bring the war to an end.

(BEGIN VIDEO CLIP)

REP. CHIP ROY (R-TX): We ought to know. We ought to know where all those dollars are going. We ought to know whether it's being spent effectively, and we ought to know whether there's any chance of success. And look, I think the president was right. He said, there's three

doors here. Either you're going to lose or we're going to be drawn into war, or we need a ceasefire. And the president is right to choose a ceasefire.

(END VIDEO CLIP)

MACFARLANE: Let's go live now to Tia Mitchell. She's the Washington bureau chief for "The Atlanta Journal Constitution".

Thank you so much for your time.

I just want to get to the Republican reaction to this in just a moment, but first, to the decision itself. I mean, this marks a significant shift in U.S. foreign policy, one, you know, previously considered unthinkable in many ways, not least because it plays directly into Vladimir Putin's hands. We heard our correspondent Nick Paton Walsh there saying it is unclear here what the Trump administration really want and expect from Zelenskyy.

Where do you see what the Trump administration want? Is this to do with the blow up at the Oval Office on Friday, and simply wanting an apology from Zelenskyy, or is it something more than that?

TIA MITCHELL, WASHINGTON BUREAU CHIEF, ATLANTA JOURNAL-CONSTITUTION: I mean, I think a lot of it is personal that President Trump and Vice President Vance didn't feel like President Zelenskyy, you know, came humbly enough. They want an apology. They feel that he embarrassed them in the oval office.

So I think a lot of it has to do with that about putting President Zelenskyy in his place. But I also think just their values are a little bit different. There's a shift in values in the white house away from kind of feeling like you have to protect every single ally. A shift in values away and feeling that American foreign policy means, you know, getting your hands and fingers into all these conflicts outside of the United States. So it's not just the personal, but I think the personal perhaps caused the White House to act more aggressively towards Ukraine.

And I do think kind of its, it kind of goes with the culture of the White House, where you kind of show your strength through, you know, letting people know, letting people know that they need to fall in line quickly. So I think it's a mixture of all of that.

MACFARLANE: Yeah. Funding for Ukraine had already been approved by Congress. Could this set President Trump on a potential collision course with or confrontation with Republicans over this, or do you simply expect that they are going to fall in line behind the president?

MITCHELL: Yeah. I mean, I think this actually comes down -- a lot of what the White House is doing that appears to be problematic to a lot of people on a bipartisan basis. But it will be up to congressional Republicans whether anything is done about it. And the pattern so far from congressional Republicans after, you know, a little bit over a month of Trump being in office, is that they are not willing to publicly stand up to Donald Trump, that they will perhaps use back channels to get as much as they can get done, to make suggestions, to try to influence the White House and influence domestic and foreign policy.

But so far, we've seen it stop there. You know, maybe there are one or two who are willing to publicly, split with the White House. People like Mitch McConnell, not nearly enough to actually, have Congress pass policy stand to limit the powers or the -- how far the White House can go.

[05:15:12]

We're just not seeing that right now. There's no evidence that's going to happen right now.

MACFARLANE: And all of this is -- is coming ahead of Trump's big primetime speech to Congress, of course, happening later today. And it's been a busy 24 hours.

We saw Trump announce that those tariffs against Canada, Mexico would go ahead. They now have. And we've seen Canada retaliate already this morning, 25 percent tariffs on 20 billion worth of U.S. imports. And Mexico are expected to retaliate Tuesday morning.

I mean, public opinion polls here of how Trump is handling the economy are currently not great in the U.S. Obviously, the cost of goods, the high cost of eggs is -- has been much talked about.

How much is the Trump administration here sort of risking a voter backlash over kind of gambling on taking these tariffs forward?

MITCHELL: Yeah, I think there is a risk of backlash. I think there's a risk that a lot of the constituency that helped put Republicans in power are if they don't feel like the Trump administration is moving -- making good on promises. You know, Trump promised to bring the cost of goods immediately after taking office, and now, he's running the risk of raising the price.

We'll see though. I think there's also a chance that just like Republicans in Congress and in line with Trump, there's a chance that, you know, the electorate in general could fall and not ultimately be as concerned about his economic policy. We'll know in the coming weeks if these tariffs do lead to inflation. Voters are willing to give Trump more of a leeway or they're going to start asking for a change.

MACFARLANE: Yeah. Tia, we appreciate your comments and apologies for the slight signal delay there with Tia in Washington. Thanks very much.

Now, it's the biggest day of the year in New Orleans, and severe weather is threatening to ruin the Mardi Gras celebration. This is the scene of Bourbon Street right now, a little after 4:00 a.m. in the coming hours. The city is expected to get hit with severe thunderstorms and powerful winds, with gusts topping 50 miles an hour. That's forcing officials to reschedule some of Fat Tuesday events and drastically alter plans for the day itself.

That is, city's mayor. Parades will start in the early morning hours, but without the traditional floats or marching bands. Officials say those events will now happen this weekend.

(BEGIN VIDEO CLIP)

ANNE KIRKPATRICK, SUPERINTENDENT, NEW ORLEANS POLICE DEPARTMENT: Carnival is a very important cultural event for our city, and so if I can accommodate and do it safely, I am going to try.

We are a city of carnival. We are known worldwide for that. You don't just cancel that easily. Always public safety always will be number one.

(END VIDEO CLIP)

MACFARLANE: Firefighters are making progress in the U.S. state of southern California, where dozens of wildfires broke out over the weekend. The Carolina forest fire near Myrtle Beach, a popular tourist spot, is still active. It's only 30 percent contained and has burned more than 2,000 acres alone.

A doorbell video caught these flames erupting outside a house early Sunday. The homeowner did get out safely. There are no reports of injuries or deaths from these fires. Dry conditions and lack of rain have created dangerous fire conditions in the southern state, but more humid air is expected in the coming days, which could help firefighters gain the upper hand.

Meanwhile, a fast moving dust storm swept across parts of the southwestern U.S. and northern Mexico on Monday, leaving drivers with almost zero visibility. A passenger in New Mexico captured these images of a wall at dusk, moving at breakneck pace. This kind of extreme event is a meteorological terms is called a haboob. Didn't know that.

The storm prompted an emergency alert for drivers to shelter in place, as authorities tried to get the cars off the interstate.

Now, Pope Francis recently suffered a setback and as he battles double pneumonia in hospital. We'll have a live report from Rome after the break.

Plus, swollen rivers have led to fast moving floodwaters in northern Peru, forcing thousands from their homes.

And while LeBron James is all but certain to make NBA history tonight.

(COMMERCIAL BREAK)

[05:24:16]

MACFARLANE: The Catholic faithful gathered in St. Peter's Square again to pray for Pope Francis. The pontiff is still in hospital after 19 days and suffered a setback on Monday. CNN's Ben Wedeman has been live from Rome since the beginning, and is

joining us now from the Vatican.

Ben, a real concern about this latest setback. What news are you hearing this morning?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, certainly, it seems that there's going to be many more of these nightly prayer vigils for the pope at this point. We did get a one line statement from the Vatican this morning saying that the pope slept throughout the night and continues to rest. But certainly what he experienced yesterday, according to a source at the Vatican, was a very difficult afternoon in which he had two respiratory crises.

[05:25:08]

They described them as acute respiratory failures, the medical staff here at Rome's Gemelli Hospital had to intervene, giving him two bronchoscopies to clear excess mucus from his airways. This following last Friday, when, as a result of more respiratory problems, the pope vomited.

So certainly it doesn't appear that his health is improving, that despite the fact he's been here in hospital for the last 19 days, suffering from double pneumonia. We are expecting to get some sort of update in the coming hours on the pope's health.

But, Christina, at this point, it doesn't appear that anybody is willing to say at this point when the pope will be able to leave this hospital and return to Vatican City -- Christina.

MACFARLANE: Yeah. It is very concerning. Well, of course, continue to follow developments there. Ben Wedeman in Rome, thank you.

(MUSIC)

MACFARLANE: That is, of course, Dolly Parton's classic "Jolene", a song she reportedly wrote about a local bank teller who flirted with her husband, Carl Dean.

Well, Dean, Parton's husband of nearly 60 years, died on Monday in Nashville, Tennessee. He was 82. They kept their relationship private for decades.

Parton released a statement on social media saying, in part, words can't do justice to the love we shared for over 60 years. Thank you for your prayers and sympathy. No cause of the death was announced.

Thousands of firefighters are struggling to get the upper hand in Japan as they battle the country's biggest wildfires in a decade. Why things could soon get even worse.

Plus, China and Canada respond to new U.S. tariffs. We'll see what that could mean for consumer prices across northern America.

(COMMERCIAL BREAK)