Return to Transcripts main page

CNN Newsroom

EU Leaders Gather for Special Summit on Ukraine and Defense; U.S. Negotiating Directly with Hamas in Break with Policy; Trump Pauses Canada, Mexico Auto Tariffs for One Month; Beijing Pushing Back Against New U.S. Tariffs. Aired 4-4:30a ET

Aired March 06, 2025 - 04:00   ET

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

[04:00:00]

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Strengthening defenses across Europe and support for Ukraine will top the agenda at a summit in Brussels.

UNIDENTIFIED MALE: European countries have to get better at defending themselves.

UNIDENTIFIED MALE: President Trump is making a new effort to try and seek the release of the remaining hostages held in Gaza, issuing a fresh ultimatum to Hamas.

UNIDENTIFIED MALE: Donald Trump has decided on a one month pause in auto tariffs in Canada and Mexico.

UNIDENTIFIED MALE: We're a little spitting mad that we're at this point because it makes no sense to us.

(END VIDEO CLIP)

RAHEL SOLOMON, CNN ANCHOR: Hello and a warm welcome to our viewers joining us from the U.S. and all around the world. I'm Rahel Solomon. It is Thursday, March 6th, 4 a.m. exactly here in New York, 10 a.m. in Brussels.

That's where at this hour European leaders are gathering for a summit focused on defending Ukraine as well as strengthening defenses across Europe as they face the new reality of a U.S. administration that they fear is no longer a reliable security partner. Ukrainian President Volodymyr Zelenskyy will be among those attending. He says that Ukraine and Europe are working on a plan for the first steps toward a sustainable peace.

This all comes at a critical time in his country's fight against Russia after the U.S. abruptly paused its military aid for Ukraine and the fallout over that heated Oval Office meeting last week between Mr. Zelenskyy and President Donald Trump. French President Emmanuel Macron says that Europe is now entering a, quote, new era after the U.S. changed its position on supporting Ukraine. He also issued this stark warning.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT (through translator): I would like to believe that the United States will stay by our side. But we have to be ready if this isn't the case. Whether peace for Ukraine is acquired rapidly or not, European countries need to take into account the Russian threat I have described and have to get better at defending themselves and dissuading all new aggressions.

(END VIDEO CLIP)

SOLOMON: Meanwhile, the fractured U.S.-Ukraine relationship is forcing Kyiv to figure out how to navigate the war without help from its once staunch ally. Ukrainian commander says that the recent suspension of U.S. military aid, quote, pains him, but also adds that his military may be able to plug the gaps by ramping up domestic weapons production and developing its drone units.

The White House has also announced a pause on U.S. intelligence sharing with Ukraine but isn't revealing whether that move is temporary or permanent. U.S. officials have suggested that it could be short-lived if President Trump is satisfied that Ukraine is taking steps toward talks to end the war.

Now, despite last week's disastrous meeting in the Oval Office, Ukraine says that U.S. and Ukrainian officials have agreed to hold discussions again in the near future. And the Ukrainian president also suggested that there's reason for optimism.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Everyone can see how quickly diplomatic events are developing. Today, our teams, Ukraine and the United States, started working on the meeting. Andriy Yermak and Michael Waltz spoke, and there is positive progress. We hope to see the first results next week.

(END VIDEO CLIP)

SOLOMON: All right let's get to CNN's Nic Robertson, who is in Brussels and joins us now with the latest. Nic, good morning to you. What can we expect to come from this summit today?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, 27 EU leaders coming here. They're going to be talking about the money to finance spending more on European defense. It really will be a decision about how you raise that money, not so much about precisely where it's going to be spent. That will happen at later meetings.

And it really does sort of underscore the comparative speed at which President Trump can move and make decisions. And the European Union can compensate to try to fill in the spaces. The spaces in intelligence, in weapons supplies are opening up already. The Europeans, even moving at speed, and this is them moving at speed, will still take some time.

And what we will hear about today is a plan to raise potentially as much as 800 billion euros worth of finance to support the 27 nations spending more on their defense. 150 billion of it may come in loans.

[04:05:00]

650 billion may come in decisions by individual nations to spend more, up to 1.5 percent of their GDP, the additional on defense spending. And some of the ways and the sort of mechanisms to allow this to happen, if you will, are what will be the detail of the discussion today. For example, to allow countries to spend, EU nations to spend more on their defense.

This means that some of the fiscal rules of the EU have to be eased a little bit. So that's one thing. The raising of 150 billion, well, even the EU, you know, population 450 million, a massive market, if you will, cannot snap its fingers and get that money.

But what it can do is collectively go to banks as they did during Covid and say, we're good for the loans, loan us the money. We need to do something exceptional in exceptional circumstances. So that's how they're going to discuss whether or not they'll or how they'll get that 150 billion.

So you can already see there's a lot, a lot of detail that will get into raising the money. And as I said, how to spend it. We're not even at that meeting yet. That's still weeks, maybe maybe a month away. So you really begin to understand just how effectively slow it will be for the European Union nations to step up and fill the space they now see the Trump White House leaving.

SOLOMON: Yes, it's interesting, Nic. I mean, we were just showing video there of European leaders meeting over the weekend and notably Keir Starmer, U.K. Prime Minister, front and center. He is not expected to be in attendance today.

Obviously, the U.K. no longer part of the EU. But Nic, considering that Starmer and the U.K. have become one of the key players in this European effort to increase support, how much can be accomplished today without him there?

ROBERTSON: You know, I think a lot because this is a decision for the EU on their finances and how they raise that additional money, how the U.K. raises money is a separate issue for the U.K. There is absolute lockstep among the leaders and the diplomats you talk here that Britain is part of the process, that Norway, also not a member of the EU, will be part of that process. Both are countries that have a lot of money and a lot of commitment to give and to spend on supporting Ukraine militarily.

The vision, although I said that how exactly the money gets spent isn't decided because they haven't decided how we can get the money yet. How it gets spent, there are a lot of ideas about that. There is a lot of discussion.

And countries like the U.K. and Norway will absolutely be part of the EU's discussions on how they procure defense equipment, where they would buy tanks and fighter aircraft and artillery shells from, all of that. And the way they look at it is this, that within those 27 nations, they have seven or eight that are big arms manufacturers. But there are a lot of small and medium-sized businesses within Europe that the European Union wants to be part of that picture.

So when they talk about borrowing 150 billion and spending an additional 650 billion euros, this is money that will be spent inside of Europe alongside of Norway and the U.K. It's good for everyone's economy. That's the assumption. That's the thesis that's being laid out.

And it also provides that stronger defense and the ability to give Ukraine the security guarantees it wants. So even though the U.K. is not in the room and Norway not in the room, they're absolutely part of the European picture moving forward.

SOLOMON: Yes, so a lot of questions and details to be sorted out in terms of how it's all spent. But first, you have to decide how it's going to be raised.

Nic Robertson in Brussels, thank you. We'll see you in the next hour.

All right, for what's believed to be the first time ever, the U.S. is negotiating directly with Hamas about the hostages and ceasefire in Gaza. This marks an abrupt change in policy for the U.S., which for decades has refused to engage with groups that it considers terrorists. The U.S. declared Hamas a terrorist organization in 1997. No comment yet from Hamas about the negotiations. The White House press secretary explaining why the Trump administration is breaking with precedent.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The special envoy who's engaged in those negotiations does have the authority to talk to anyone. Israel was consulted on this matter. And look, dialogue and talking to people around the world to do what's in the best interest of the American people is something that the president has proven is what he believes is good faith effort to do what's right for the American people.

(END VIDEO CLIP)

SOLOMON: Meanwhile, Hamas is speaking out about a new ultimatum from President Trump, who warned that there will be, quote, held to pay if all remaining hostages are not released. [04:10:00]

CNN's Jeremy Dimon has this report from Tel Aviv.

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, President Trump is making a new effort to try and seek the release of the remaining hostages held in Gaza, issuing a fresh ultimatum to Hamas. In a social media post, the president wrote, quote, Release all of the hostages now, not later, and immediately return all of the dead bodies of the people you murdered or it is over for you. Only sick and twisted people keep bodies and you are sick and twisted. The president goes on to say that he is going to, quote, be sending Israel everything it needs to finish the job and saying that not a single Hamas member will be safe if you don't do as I say. He goes on to say that this is Hamas's, quote, last warning and also issues a warning to the people of Gaza, saying that a beautiful future awaits you, but not if you hold hostages. If you do, quote, you are dead.

This certainly isn't the first time that we have heard this kind of tough language from the president being directed at Hamas regarding the remaining hostages being held in Gaza. But this time it seems to come with a lot more meat on the bone. And it also comes at a very, very delicate moment in this ongoing ceasefire.

Phase one of this ceasefire agreement has been completed with the release of 33 Israeli hostages in exchange for more than seventeen hundred Palestinian prisoners. But now we are in the delicate stage where the U.S. and Israel are both trying to pressure Hamas not to get into phases two and three of that deal, which would lead to the withdrawal of Israeli troops and the end of the war in Gaza but instead are trying to impose new conditions on Hamas.

We know that Israel has put forward this new proposal to see six or seven more weeks of ceasefire in exchange for the release of half of the remaining living and dead hostages being held in Gaza.

And now President Trump, with this ultimatum to release all of the hostages immediately or effectively face the wrath of U.S.-backed Israeli military resuming its war in Gaza.

Israel has already begun to block humanitarian aid into Gaza as an effort to pressure Hamas, one that has drawn immense criticism from the international community and human rights groups who have called that a violation of international law. And now, clearly, there is also very much the specter of the Israeli military recommencing its fight in Gaza amid this latest from the president.

Hamas is already firing back. The spokesman for Hamas, Hazem Qasim, says that these threats, quote, complicate matters regarding the ceasefire agreement and encourage the occupation government, meaning Israel, not to implement the agreement. He is then calling on the U.S. administration to instead pressure Israel to enter the phase two of the ceasefire agreement, as was previously scheduled.

We've also now learned that the United States has been holding direct conversations with Hamas. Adam Boehler, the special envoy for hostage affairs for the United States, has met with Hamas officials in Qatar, according to a report from Axios. That was effectively confirmed by the White House press secretary, who said that Israel was consulted on this matter and that the talks are, quote, ongoing, but that she would not get into the details.

This would be the first time that the United States has engaged in direct talks with Hamas, as far as we know.

Jeremy Diamond, CNN, Tel Aviv.

(END VIDEOTAPE)

SOLOMON: President Trump's threats came after he met in the Oval Office with some of the hostages recently released from Gaza during phase one of the ceasefire. Two others in attendance had been freed during an earlier rescue operation. The group said that Mr. Trump gave them hope and urged him to keep up the effort to bring every hostage home.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, we said you better let us have those people back. You better let them out. We did say that and something happened. Now we're going to get the rest out.

(END VIDEO CLIP)

SOLOMON: Donald Trump, meantime, is pumping the brakes on auto tariffs against Canada and Mexico for the next month. But 25 percent tariffs on other imports from those countries will remain in place. Mr. Trump says that he made the decision after speaking with executives from top U.S. automakers to protect them from financial harm. CNN's Kaitlan Collins asked the White House press secretary about the length of the tariff pause.

(BEGIN VIDEO CLIP)

KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: On the reprieve that is being granted to these three automakers for one month on the tariffs on Canada and Mexico, how did the president settle on one month?

LEAVITT: The reciprocal tariffs will go into effect on April 2nd, and he feels strongly about that. No matter what, no exemptions. So that's where the one month comes from.

COLLINS: So does he expect them to be able to shift production within a month?

LEAVITT: He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff. That's the ultimate goal.

(END VIDEO CLIP)

[04:15:00]

SOLOMON: Canadian leaders, meantime, welcoming the one month reprieve, but also saying that ideally they want zero U.S. tariffs and they will not budge. President Trump says that he spoke with Canadian Prime Minister Justin Trudeau on Wednesday and told him that Canada's efforts to slow the flow of fentanyl into the U.S. are, quote, not good enough. Only about two-tenths of one percent of all fentanyl seized at the U.S. border last year came from Canada. And some Canadian leaders say they don't think that President Trump is being truthful about his motives for the tariffs.

(BEGIN VIDEO CLIP)

DREW DILKENS, WINDSOR, CANADA MAYOR: We're a little spitting mad that we're at this point because it makes no sense to us. And the stated purpose of why they're putting in place border security and fentanyl, we know that's bogus. Just tell us what it is we're trying, what target are we trying to reach here?

It is an early renegotiation of the trade agreement. Let's get the folks around the table, do the work. We continue to build the economies together.

(END VIDEO CLIP)

SOLOMON: And on the U.S. side of the border, meantime, auto workers in Detroit remain conflicted. CNN's Jason Carroll has this report.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): When it comes to the auto industry, Sterling Heights just might be the economic engine driving the Motor City. There are three major automakers in this Detroit suburb alone. And city officials say some 40 percent of residents here have jobs in or related to the auto industry.

So no surprise the topic on the minds of many here are the what ifs when it comes to tariffs.

LORENZO CASTELLANO, AUTO WORKER: I think tariffs will hurt.

CARROLL: You think they're going to hurt?

CASTELLANO: Yes, I do. I personally do. Because if it's too high, they're not going to want to deal with us, right?

NIKKI JONES, AUTO WORKER: We might not see it maybe right away, but it's going to hurt down the line.

CARROLL (voice-over): Nikki Jones has been an auto worker for more than a decade. She worries about what tariffs on imports from Canada and Mexico would mean for consumers and jobs.

CARROLL: Are there any concerns that eventually those in your industry could lose jobs?

JONES: Possibly, because if no one is buying cars, we're going to get laid off. It's a trickle effect.

WLADISCHKIN: It might get worse at first.

CARROLL (voice-over): But that's where the agreement ends for Jordan Wladischkin. He says tariffs might trigger what he called short-term economic struggles for consumers. In the long run, he's betting it will help U.S. auto workers and the economy.

WLADISCHKIN: It's definitely going to help, I feel like. It's just going to bring jobs, I feel like, to the American people. CARROLL (voice-over): Workers here divided on how potential tariffs would impact their lives, much of that division drawn on political lines. So says recently retired auto worker Chris Vitale, who also supports the tariffs.

CHRIS VITALE, AUTO WORKER FOR TRUMP 2024: Trust me, other countries, the reason they fear tariffs is because they know what tariffs do to their competitors. They destroy them because they've been using them against us for 40 years.

CARROLL (voice-over): Sterling Heights Mayor Michael Taylor says he hears it all. And despite his own political leanings, years before Trump became president, he called himself a Republican, though now aligns more with Democrats. He worries what would happen if tariffs are imposed and last.

MICHAEL TAYLOR, STERLING HEIGHTS, MICHIGAN MAYOR: Even when I tell folks, you know, this is what's going to happen to the auto industry in Sterling Heights, they still say, no, it'll be fine. Believe me, President Trump has our best interests at heart. He's going to make it work.

So it's frustrating because the facts and the reality are different than what they're saying.

CARROLL (voice-over): Politics aside, an advocacy group representing the auto industry warned this on again, off again with tariffs could be damaging.

GLENN STEVENS JR., EXECUTIVE DIRECTOR, MICHIGAN AUTO: The industry thrives on stability and instability or disruption or short term problems like this is not something that the industry does well.

CARROLL (voice-over): Jason Carroll, CNN, Detroit, Michigan.

(END VIDEOTAPE)

SOLOMON: And U.S. financial markets responded positively to the pause on auto tariffs for Canada and Mexico. The Dow gained almost 500 points, 485 points, on Wednesday, recovering just some of the steep losses from Monday and Tuesday. It's been a rough slide. The Nasdaq and the S&P 500 also closed higher.

Taking a look at U.S. futures and where we stand this morning, it also appears that we are seeing red across the board at least for now. Actually, I think those are yesterday's numbers, if I'm not mistaken. I think futures, if I'm not mistaken, are actually in the red right now.

One thing I can tell you that investors are watching, tomorrow's all important February jobs report amid signs of perhaps some slowing in the labor market. We'll be taking a look at how many U.S. jobs were added in the month of February. So watch that space.

China meantime is gearing up for a fight as a trade war with the U.S. escalates. Still ahead, a look at Beijing's bold economic plans as it faces new U.S. tariffs.

Plus, Ukrainian President Volodymyr Zelenskyy is set to attend a key summit in Brussels as he pushes for peace after three years of war with Russia.

[04:20:00]

Plus, Republicans are pushing Elon Musk for control over the drastic cuts to the federal government. Details in the closed-door meeting between lawmakers and the unelected billionaire coming up next.

(COMMERCIAL BREAK)

SOLOMON: Welcome back and now to South Korea where one mayor says that his city looks like a battlefield. This is after the country's Air Force accidentally dropped eight bombs on a residential area. Fifteen people were hurt before the military suspended all live fire exercises there.

It happened in the city of Pocheon several hours ago during military drills with U.S. forces close to the demilitarized zone with North Korea.

[04:25:00]

South Korean officials say that the bombs fell outside of a shooting range, destroying two residential buildings and part of a church. Two of the victims were seriously wounded. Officials also say that initial findings suggest that a pilot had entered wrong bombing coordinates.

China, meantime, says it is out to prove that if the U.S. wants a trade war, Beijing is ready to fight. The country has set an ambitious goal for its economic growth this year despite the new U.S. tariffs. And right now, Chinese officials are explaining how they plan to achieve that goal at the annual National People's Congress. And CNN's Marc Stewart has more.

(BEGIN VIDEOTAPE)

MARC STEWART, CNN CORRESPONDENT: During his address to Congress, President Trump promoted the benefits of tariffs. Yet here in China, during the annual meeting of the rubber stamp legislature, the government was very skeptical of tariffs, saying that they are a hindrance to the global stage. China right now is involved in a back and forth with the United States involving tariffs.

On Tuesday, China retaliated with tariffs directed toward American farmers and agriculture workers. And at this point, no indication when Chinese leader Xi Jinping and President Trump will talk again.

As far as China's economy, during this meeting, a growth target of around 5 percent was set in line with what we saw last year. China's economy is growing, but at a much slower pace as in years past. Chinese officials also have expressed concern that the economic recovery right now in China is a bit unstable. Also looking to the future, China has set an increase of military

spending as well, but again, not necessarily as much as we have seen in years past.

And finally, we should acknowledge our presence here on Tiananmen Square. Normally off limits to foreign journalists, but because this meeting is taking place, because it's so significant, we have been allowed to be here.

Marc Stewart, CNN, Beijing.

(END VIDEOTAPE)

SOLOMON: The U.S. is cracking down on a group of Chinese hackers who reportedly caused millions of dollars in damages. Twelve Chinese nationals were charged on Wednesday for allegedly targeting U.S. companies and government agencies. None of the suspects are in U.S. custody. A separate indictment says that China's security services are using a growing network of hackers for hire to conduct computer breaches. They also allegedly stole data and tried to locate Chinese dissidents. China denies conducting any hacking operations.

Well, still ahead for us, a new round of mass firings is coming for federal employees. Meanwhile, other fired workers have been reinstated to their jobs after a review board ruled against the government.

Plus, a divided U.S. Supreme Court voted against the Trump administration's bid to keep foreign aid funds frozen. Although it's still unclear when or if billions of dollars from USAID will start flowing again. I'll be right back.