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Higher Tariffs for China, Asia Markets Slump; Supreme Court Orders Return of Migrant Wrongly Deported; Helicopter Crashes on Hudson River, Everyone on Board Killed; End of Search in the Dominican Republic Nightclub Roof Collapse Tragedy; Ksenia Karelina Freed from Russian Jail in Prisoner Swap; Former President Pakistan is Interviewed by Kristie Lu Stout; Alvi Calls For Return To Democracy In Pakistan; World's Smallest Pacemaker To Make Big Impact On Tiny Hearts. Aired 2-3a ET

Aired April 11, 2025 - 02:00   ET

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

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KRISTIE LU STOUT, CNN HOST: Hello, and welcome to "CNN Newsroom." I'm Kristie Lu Stout in Hong Kong. Thank you for joining me. Now, coming up this hour, the U.S. president's tariff mayhem is bringing more economic volatility and stock futures in Asia markets are telling us.

Plus, Pakistan's former president talks trade, U.S. relations, and the state of his country's politics.

And the world's smallest pacemaker could revolutionize heart health. Its size is just one extraordinary thing about it.

It's 2:00 p.m. here in Hong Kong where markets will soon close after yet another volatile day as Donald Trump fires a new shot at China in the worsening trade war. During a meeting with this cabinet on Thursday, the president clarified that Chinese goods coming into the U.S. will actually be subject to at least a 145 percent tariff. Multiple officials tell CNN that the White House is waiting for China to make the first move to break the impasse. The president says that he's optimistic that he can make a deal with his Chinese counterpart.

Meanwhile, Wall Street took yet another beating, with the Dow losing two and a half percent. The Nasdaq, the S&P, they were also off sharply. The president told reporters that there's still some kinks to be worked out.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: We had a big day yesterday. There'll always be transition difficulty, but we had a -- in history, it was the biggest day in history, the markets. So we're very, very happy with the way the country is running. We're trying to get the world to treat us fairly.

(END VIDEO CLIP) STOUT: For a reaction from the Asia-Pacific region, let's bring in CNN's Mike Valerio. He joins us live from Seoul. Mike, good to see you. The turmoil drags on this week. Let's talk about Japan and South Korea first. And then, where is this going with China?

MIKE VALERIO, CNN CORRESPONDENT: Sure. Well, Kristie, you know, we have Seoul and Tokyo who are leading the market declines at this hour. Tokyo down around three and a half percent. Seoul, off the session lows, down around one percent for most of the day today. But interestingly enough, we see a rally in Hong Kong, solid gains in Shanghai, in part fueled by the sentiment that perhaps China, preparing for this moment, for this trade war 2.0 for years, can possibly weather this storm.

We're seeing these declines here in Japan and in South Korea because even though, Kristie, those tariffs on the giant poster board introduced in the Rose Garden the other day are off the table, tariffs on cars, steel, aluminum, those are in effect right now. And whose economies are those hammering right now? Look no further than where we are in Seoul and, of course, Honda, Toyota in Japan.

So something that could move this along in terms of making a deal for these U.S. allies here in the region is uncertainty, turmoil and trouble in the bond market. Numbers crunched by our own John Liu in Hong Kong and Reuters. The 30-year treasury yield all the way up to 4.95 percent, the largest weekly increase since 1982.

And why that matter is because usually when the markets tank, people try to flee to the safety of treasury bills, and that is not happening. People are in part selling their bonds to make up for losses in the market and not trusting the safety of the United States anymore. So let's listen to President Trump talking about his prospects for a deal specifically with China, and then we'll pivot to China. Let's listen.

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TRUMP: We would love to be able to work a deal. All we're doing is putting it back in shape. We're resetting the table. I have great respect for President Xi. He's been, in a true sense, he's been a friend of mine for a long period of time. And I think that we'll end up working out something that's very good for both countries.

(END VIDEO CLIP)

VALERIO: So we have those statements. And then the reality, a reporting from the White House team a few hours ago indicating that Trump is waiting for Xi to make the first move, to make the phone call first. And as our Steven Jiang, Beijing bureau chief, was reporting since yesterday, Kristie, that is not Xi's MO.

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He usually has working level officials hammer out the details of a deal and then comes in when the deal is ready to be made to put a bow on the package. So, for what it's worth, Xi recently announcing within the past two, three hours that he will be visiting Vietnam, Malaysia, Cambodia next week to try to add more allies to his cause, fighting and retaliating against these U.S. tariffs, Kristie.

STOUT: Yeah, and meanwhile, a lot at stake as these two major economic powers remain at loggerheads. As you laid out, U.S. bond markets falling, Asian markets falling outside of greater China at the moment. Mike Valerio, joining us live from Seoul, thank you.

Now, Wall Street is hoping to end the week on a winning note after some of the biggest losses and gains in years. Richard Quest has more.

RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: The Thursday session on Wall Street was a day of reality. The trade relationship between the U.S. and China, the trade war that is now well and truly underway, is coming home to investors. Very sky high tariffs on both sides with no sign of negotiations to ratchet the temperature down means that investors simply can't see any reason to buy the market. Quite the opposite.

With certain strains on equity selling, some are having to sell bonds to try and cover shortfalls and margins. This is a very dangerous position for the stock market to be in because in the absence of any reason to move forward, such as success in trade negotiations with various partners, the U.S. says there are up to 15 wanting explicit deals, there really is no reason for this market to rise. Instead, everyone's watching and waiting and the whole thing is at the whim of a post on social media from the president. Richard Quest, CNN, New York.

STOUT: So who is going to blink first in the U.S.-China trade war? Well, the former U.S. Treasury Secretary Janet Yellen says the Trump administration has completely mishandled the situation. Canadian businessman and Shark Tank co-host Kevin O'Leary, he says China has some work to do.

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JAMET YELLEN, FORMER U.S. TREASURY SECRETARY: We had a very well- functioning economy and President Trump has taken a wrecking ball to it. I'm afraid I could not give it a passing grade. This is the worst self-inflicted wound that I have ever seen an administration impose on a well-functioning economy.

KEVIN O'LEARY, CANADIAN BUSINESSMAN: Xi is not stupid. He's an incredibly crafty, smart individual, and that's why he's risen to the position he's in. But he understands that this is DEFCON 1 here. This is mutual destruction. It's almost like a nuclear economic war. The U.S. has to work this out and so does China, but we might as well get it done. The difference here, it's not just about tariffs, tit-for-tat tariffs. China has to stop stealing IP and it has to actually open up the markets.

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STOUT: Now, in a ruling that one legal expert calls, quote, "maddeningly vague," the U.S. Supreme Court says the Trump administration must facilitate the return of a Maryland man wrongly deported to a notorious El Salvador prison. But the top court stopped short of requiring the government to make the return of Kilmar Armando Abrego Garcia actually happen. CNN's Paula Reid explains.

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT: On Thursday, the Supreme Court released its much-anticipated decision on a man who was accidentally deported to El Salvador. Now, a lower court had ruled that the Trump administration must return this man to the United States. The administration appealed. And once this reached the Supreme Court, they had a few options.

And in their decision released late Thursday, they sort of took a middle road. They didn't order that the man has to be returned or that he does not have to be returned to the United States. Instead, they said that the administration must, quote, "facilitate his return," but didn't explain exactly what that means nor did they give the administration a deadline.

It is expected that this case will now go back down to the lower court to clarify some points that the justices said needed to be fleshed out. So, at this point, it's unclear how long this process will take to play out and when, if ever, this man will be returned to the United States. And this decision comes after several wins for the Trump administration at the high court over the past few days, wins on cases dealing with immigration, but also with the administration's efforts to cull the federal government.

So, we're still waiting for one big case from the Supreme Court right now, and that is a decision on the administration's effort to end so- called birth rights citizenship.

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That's the last big question that justices have on their desks for now. But, of course, we're just a few months away from Supreme Court decision season. Paula Reid, CNN, Washington.

STOUT: Now, the Trump administration is justifying its effort to deport the Palestinian activist Mahmoud Khalil. This newly released memo claims that Khalil is deportable because of, quote, beliefs, statements, or associations that would compromise U.S. foreign policy interests. Now, the memo, which is from the U.S. Secretary of State Marco Rubio, it contains no allegations of criminal activity. Khalil, a prominent pro-Palestinian activist and legal permanent U.S. resident, he was taken into custody about one month ago.

Now, the death toll rises from the nightclub roof collapse in the Dominican Republic as authorities call off the search for more victims. We'll have a report from Santo Domingo.

Plus, what we know about the victims of a tragic helicopter crash in New York, just ahead.

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[02:15:00] STOUT: Welcome back. Now, we're learning more about Thursday's deadly helicopter crash in New York's Hudson River. A law enforcement official says Siemens executive Agustin Escobar and his family were among the six people killed in the crash. And I have to warn you, the next video is difficult to watch.

Now, you can see what appears to be pieces of the helicopter falling from the aircraft as it plunges into the water. Investigators are trying to learn right now exactly what went wrong. The Escobar family was visiting from Spain, and the helicopter tour flew them by the Statue of Liberty and the George Washington Bridge before crashing near New Jersey. FAA records show that the helicopter was built in 2004 and had a valid airworthiness certificate.

Now, the death toll from the nightclub roof collapse in the Dominican Republic is now 225. At least 189 other people were injured in Tuesday's disaster. On Thursday, rescuers ended the search for more bodies as families buried their loved ones. And authorities try to find out what caused the disaster. Our CNN contributor Stefano Pozzebon has more.

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STEFANO POZZEBON, CNN CONTRIBUTOR (voice-over): Rescue workers stand on the sidelines watching as the massive cranes and trucks leave the scene of the deadly nightclub collapse. Nearly three days after the roof of the popular Jet Set Club caved in, the search for survivors comes to an emotional end. The director of emergency operations breaking down as he thanked his crews who saved nearly 200 people.

But more than 220 lives were also lost, and it's not clear how many are still unaccounted for. The cause of the collapse hasn't been determined.

VICTOR ATALLAH, DOMINICAN MINISTER OF PUBLIC HEALTH: I don't think we can say anything about the investigation because the investigation has not even started.

POZZEBON (voice-over): Rescuers worked around the clock combing through the rubble, but no one has been found alive in the last 24 hours.

ATALLAH: We have no more bodies and the whole area seems to be covered, so I don't think -- we don't expect any more recovery.

POZZEBON (on camera): The majority of the bodies have been taken here at the Institute of Forensic Medicine, and here is where the painful process of autopsies and identification can take place.

(Voice-over): The waiting area is chaotic and hot. Many wear masks because the smell of decomposition is so strong. Family members comfort one another as they wait for news.

Angel de los Andes (ph) tells us his cousin died at the nightclub less than four months after the death of her father.

She was the light of the family, he says, so smiley, so cheerful, so talented.

The whole nation is in mourning. Hundreds lined up to pay their respects to legendary singer Rubby Perez who was performing at the time of the collapse. Dominican president Luis Abinader watched as Perez's daughter bid a powerful farewell to her father --

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Mourners outside singing his music --

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And saying their final goodbyes to a man they considered an idol, an icon and a brother. Funerals like this just the beginning for a country trying to cope with unbearable loss. Stefano Pozzebon, CNN, Santo Domingo.

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STOUT: You're watching "CNN Newsroom." And up next, a Russian- American ballerina is now back on American soil. Ahead, reunited with loved ones after the Trump administration completes its second prisoner swap with Russia. Details on who Moscow got in return, next.

Plus, Pakistan's former president speaks to CNN. What he told me about the future of Imran Khan and his party.

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STOUT: A Russian-American woman convicted of treason in her homeland is back in the U.S. after being released in a prisoner exchange with Moscow. Ksenia Karolina arrived at Joint Base Andrews near Washington, D.C. late on Thursday. She was serving a 12-year sentence in a Russian prison for making a small donation to a charity supporting Ukraine. Matthew Chance has more.

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MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT (voice-over): These are the first images of Ksenia Karolina being set free and handed over to U.S. officials in Abu Dhabi to be flown home. The dual U.S.-Russian citizen, a beautician and amateur ballerina from L.A. was serving 12 years in a Russian penal colony for treason after donating just over $50 to a charity supporting Ukraine. Her nightmare is now ended with the latest U.S.-Russia prisoner swap.

She was wrongfully detained by Russia for over a year, the U.S. Secretary of State Marco Rubio wrote on X. And President Trump secured her release, he added.

Back in Russia, the swap was breaking news too. Another sign of the warming relations between the Kremlin and the Trump administration. One Russian source tells CNN the deal was advanced last week with a key Kremlin envoy, Kirill Dmitriev, playing an important role during his visit to Washington.

The source tells CNN that an earlier prisoner exchange involving U.S. teacher Mark Fogle in February, quote, created additional trust and enhanced cooperation in prisoner exchanges with President Trump's team. And this is who the Kremlin got in exchange, Arthur Petrov on the right, a dual Russian-German citizen being held in the U.S. for allegedly smuggling banned microelectronics to Russia that could be used to build weapons. The FBI said his arrest in 2023 showed it was resolute in its commitment to stopping Russia from rearming its military with U.S. technology.

But the war in Ukraine continues to rage. And while the Kremlin says talks with the United States are now multi-tracked, focusing on diplomatic normalization, economic deals and prisoner swaps, the long- awaited ceasefire demanded by President Trump has yet to be agreed. Matthew Chance, CNN London.

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STOUT: Now, it has been months since supporters of former Pakistani Prime Minister Imran Khan held major protests and called for his release from jail. And that's partly due to violent clashes with government forces. Khan's PTI party is looking to boost its popularity across the country, particularly among untapped voting blocs like those in southwestern Pakistan.

And this comes at a crucial time for U.S. and Pakistan relations amid President Trump's trade war, and as U.S. companies and the Trump administration show interest in Pakistan's critical minerals. Joining me now is Dr. Arif Alvi. He is the former president of Pakistan, serving in the role from 2018 to 2024. Sir, thank you so much for joining us.

ARIF ALVI, FORMER PAKISTANI PRESIDENT: You're welcome, Kristie, for having me on your show.

STOUT: Now, you're currently traveling there in the United States --

ALVI: Yes.

STOUT: -- and you have been meeting with PTI supporters.

ALVI: Yes.

STOUT: How confident is the party right now about Imran Khan's continuing popularity in Pakistan?

ALVI: I think the party is very confident. There's significant change which is happening in Pakistan. And keep in mind that in Pakistan, you can't do surveys anymore for the last three or four years. Elections were rigged. But at the same time, surveys have been done by the establishment. And I believe the last survey is about 90 percent popularity of Mr. Imran Khan. The other important thing which is happening is the number of women coming out for democracy. Never in the history of that region, leave aside Pakistan, never in the history of the Muslim countries of the world, as many women have come out.

They are behind bars. They've been dragged on the street. They've been caught by the hair. And they've been there in jail. Some of them are undergoing trial again as terrorists on the May 5 incident, for example, which was a false flag operation. And some of them are undergoing trial for the November 26 protest in which more than a dozen people were killed. So a big change is happening.

STOUT: You're rallying supporters, both male and female. Do you plan to take to the streets again, especially after recent attempts to rally have been denied by the courts and local authorities?

ALVI: We would appreciate that some negotiations take place for future elections for democracy to come back. Imran Khan, in the last two, three years of his imprisonment, he has been in prison for more than 600 days. The surprising part is that you can't show his face like you're showing right now on television. You can't show his face in all the 60 or 70 channels which Pakistan has. You can't take his name on all those channels.

People have to say the founder of Pakistan Tariq (ph) (inaudible). You can't show -- and he's being tried in prison because if he comes out, the people will rally around him.

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So, no face, no voice, no image can be shown. Despite that, we believe that the media has been totally captured. The print media was already captured. The television media has captured.

The post or the Twitter is banned. You need a VPN to be able to look at it.

So, we are talking about only two things. We are saying that the peaceful protesters should not be killed, one. We are saying that the social media should be opened up because there is no other media in Pakistan today. And if that happens, the change will happen very quickly in Pakistan.

STOUT: I also do want to talk to you about the trade relationship, because the top headline this week around the world is Donald Trump the trade war, his reversal on reciprocal tariffs. There is relief for Pakistan, but still uncertainty.

So, your thoughts here. How should Pakistan respond to Donald Trump?

ALVI: I think Pakistan should increase its imports of two things, particularly that which is very important. Pakistan imports a lot of palm oil for vegetable oil. Pakistan can increase its imports of soybean, for example, and make soybean oil. That's one possibility of decreasing the imbalance of trade.

Mr. Trump is looking at a balance of trade situation between all countries, and that's why reciprocal tariffs. That is one. The other thing is Pakistan has a shortfall -- has had a shortfall in

cotton. For example, Pakistan's need for cotton because it makes a lot of garments at 1.4 million barrels of cotton. And we have produced -- we've had a bad crop. We have produced only 400,000 bales of cotton.

So, Pakistan can improve import American cotton. There are many other areas -- Pakistan service industry, in fact, in I.T., can work a lot to provide services to the United States. So, I think this is a -- this can be a win-win situation for Pakistan for reciprocal. There can be zero tariff for cotton going there and zero tariff for our garments coming to the United States.

STOUT: You know, surging terrorism in Pakistan, especially in areas where there are these critical minerals. How should the government handle the rise in violence in areas like Baluchistan?

ALVI: Look, the clear answer, Pakistan on February 8th won elections were Pakistan, Pakistan Tehreek-e-Insaf won the elections in Baluchistan, but they were deprived of the vote. Had -- had they not been deprived of the vote, the government in Baluchistan would have been of Pakistan Tehreek-e-Insaf, and you would have government in all the provinces of Pakistan Tehreek-e-Insaf.

The voice which the terrorists may be raising and exploiting that situation would not have been there because there would have been a federal voice raised by the youth who are getting elected in Baluchistan. Now, you don't have that. When you don't have that, the initiative goes into the hands of the terrorists.

When vote has no force, when vote is not reflected in government decisions, when the vote is not reflected in parliament, then it gives a message to the youth of Baluchistan that your votes and your opinion does not matter. And some of the misguided youth can pick up arms.

You know, we still believe there is a possibility of negotiating. And out of that frustration which is happening in Baluchistan. A train was hijacked, and I believe the government figures are 36 people were killed. We think more people were killed in Baluchistan.

Terrorism on the rise, you know. Probably the matters are out of control of the government. There is a protest going on. The people are not being allowed to assemble anywhere.

There is a protest going on in Islamabad and everywhere. And those protesters are being forced, prevented from expressing their opinion by brute force. So, the frustration is increasing.

Terrorism may rise because of that. And Pakistan is under danger. Thats why Imran Khan and Pakistan Tehreek-e-Insaf has always given the first option to negotiations, rather than a street war, which can create bigger problems for Pakistan.

STOUT: Dr. Arif Alvi, we have come full circle. Thank you for joining us. Thank you for that wide-ranging and important conversation.

ALVI: Thank you very much. It was a pleasure being here. Thank you. Thank you.

STOUT: You're watching CNN NEWSROOM.

And up next, engineers have created a device to show that hope really comes in tiny packages. When we come back, the miniature medical device that will soon help the smallest, most vulnerable heart patients.

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STOUT: A tiny piece of technology, it's crafted by engineers at Northwestern University near Chicago, will soon offer new hope to heart patients.

Jacqueline Howard has more.

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JOHN ROGERS, PROFESSOR OF BIOMEDICAL ENGINEERING, NORTHWESTERN UNIVERSITY: It's about the same size as a sesame seed.

JACQUELINE HOWARD, CNN HEALTH REPORTER (voice-over): They're calling this the world's smallest pacemaker.

Engineers at Northwestern University developed the device to be so minuscule that it fits inside the tip of a syringe, and it can be injected right into a patient's chest. So, no invasive surgery is needed.

The pacemaker itself is light sensitive. It works alongside this small patch stuck to the skin when an irregular heartbeat is detected, it flashes. That light activates electrodes on the pacemaker, and then sends electrical impulses to the heart, helping to control and correct the pace of the heartbeats.

While this tiny pacemaker can work with the heart of any size, it might especially benefit newborn babies with congenital heart defects as they recover from serious heart surgeries.

ROGERS: Post recovery can be daunting, especially for infants who undergo that kind of surgery.

HOWARD: The pacemaker isn't meant to be worn for life.

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ROGERS: It will dissolve away over a period of six to nine months completely.

HOWARD: For now, this tiny piece of technology is still an experiment. But one day, it could make a big difference for our youngest, tiniest heart patients.

(END VIDEOTAPE) STOUT: Thank you for joining me. I'm Kristie Lu Stout in Hong Kong. I'll be back in about 20 minutes with more news.

"WORLD SPORT" is next.

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