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Trump Makes New Tariff U-Turn, Exempting Electronics Made In China; BlackRock CEO: U.S. May Already Be In A Recession; Witkoff Met With Vladimir Putin For Four Hours On Friday In Russia; CNN Goes Inside El Salvador's Notorious Mega-Prison; DOJ Confirms Man Who Was Mistakenly Deported To El Salvador Mega-Prison "Is Alive And Secure"; Dozens Of DHS Staffers, Including Top FEMA Officials, Give Lie Detector Tests Over Alleged Leaks. Aired 6-7p ET

Aired April 12, 2025 - 18:00   ET

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


[18:01:41]

ERICA HILL, CNN HOST: Thanks for joining me here in the CNN NEWSROOM. I'm Erica Hill, in for Jessica Dean.

Another U-turn on President Trump's tariffs. The White House announcing certain electronics, including smartphones, will now be exempt from that massive 145 percent tariff on Chinese goods. CNN's Kevin Liptak is live in West Palm Beach, Florida, with more on the decision.

So there are exemptions for certain electronics, but not all the tariffs are necessarily gone at this point for these items.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes, certainly that very high 145 percent reciprocal tariff, now, that won't apply to this list of products, but there are other tariffs that the President has applied on China that will still affect these particular types of items. They will still be impacted by the 20 percent tariff that the President applied on China as part of his attempt to remedy the fentanyl crisis, and so these products will still have new duties on them, but certainly not the types of duties that the President had announced this week, those significant tariffs that are now upending global trade.

Now, the list of products that will be included are among the most popular for American consumers, including smartphones, laptops, transistors, flat panel monitors, hard drives, semiconductors -- all items that, for the most part, are not manufactured in the United States.

This could be a real boon for consumers who had started to worry about these potential higher prices that were coming down the pike. It could also be a boon for the companies that make these products. You know, your Apples, your Samsungs, companies that had been warning about the potential for higher prices. But also, I should note, have spent the last two months cozying up to the Trump administration, now, all of that could be paying off for them.

The real question now going forward is how long this reprieve will last, because when you talk to White House officials, they make the point that the President has talked in the past about trying to apply more specific tariffs to these kinds of products, essentially leaving the door open to the prospect that there could be tariffs on these products going forward, potentially at a lower rate.

I am also told by a White House official that the President will commission a National Security study of semiconductors, which are those computer chips that are in so many products that Americans love, now, those studies often result in new tariffs down the line.

So I think bottom line is that this is not the final word in tariffs on these particular items. What the White House is saying today is that President Trump has made clear, America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops.

That's why the President has secured trillions of dollars in U.S. investments from the largest tech companies in the world, including Apple, TSMC, which is the Taiwanese chip maker, and NVIDIA at the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible. So that statement from the Press Secretary, Karoline Leavitt.

Of course, as soon as possible is all relative here, it could potentially take more than a decade for these companies to uproot their production in Asia and move it to the United States. I think all of this really just underscores the uncertainty that is still hanging over the President's trade agenda this weekend -- Erica.

[18:05:12]

HILL: Yes, absolutely. Kevin Liptak, appreciate it. Thank you.

Also joining me this hour, the Global Head of Tech Research at Wedbush Securities, Dan Ives.

Dan, it is good to talk to you today.

So as we just heard there from Kevin, what we are hearing from the White House is that this push, right, was really or this change, I should say, the exemptions as a result of companies, "hustling" to onshore their manufacturing in the United States. I know your company estimates, Apple makes 90 percent of its products in China.

We know how long it could actually take, despite how much we've heard from the President about these trillions in investments that have been promised. Do you buy this, that it was really the hustling to onshore manufacturing that led to the exemptions?

DAN IVES, WEDBUSH SECURITIES GLOBAL HEAD OF TECH RESEARCH: Look, reality hit, right? I mean, ultimately this would have been a shut off valve for U.S. tech and ultimately U.S. consumers.

I mean, in terms of these tariffs, they needed to do this. The market has been screaming for them to make this move and they did it and obviously they did on the weekend, you know, before trading starts tomorrow night.

I mean, this was you took now that Armageddon scenario that was there, you took it off the table. Tariffs are going to continue to be there, and this is obviously a game of high stakes poker, but they made the right move because the industry, the CEOs, they spoke and that's the reality in the math of it versus just beltway chatter.

HILL: I am also struck by in terms of the chatter, right? What we consistently hear that all of a sudden this -- you know, all of this is going to come back, right? The manufacturing jobs are going to come back or if they were never here that they were going to end up here. And some of the comments specifically from folks in the administration, in the Cabinet, leave me with some questions.

I want to play a little bit of what Commerce Secretary Howard Lutnick had to say recently.

(BEGIN VIDEO CLIP)

HOWARD LUTNICK, U.S. COMMERCE SECRETARY: The army of millions and millions of human beings screwing in little screws to make iPhone, that kind of thing is going to come to America.

(END VIDEO CLIP)

HILL: The Secretary has gotten a lot of attention for those comments over the past week, likely not for the reasons that he would like, but I do think it prompts an important question as to whether the administration does fully understand what it would take to shift manufacturing to the scale that it is hoping to achieve.

Do you believe there is that understanding within the administration of the realities?

IVES: I think the market spoke this week, and the more tech executives from Silicon Valley that ultimately made those phone calls, they understood it pretty quick because the reality is, like for someone like me, it has been 25 years in and around China, Taiwan supply chain, it is the most complex supply chain in the world.

I mean, it would take Apple three years, $30 billion just to move 10 percent to the U.S. and you'd be looking at $3,500.00 iPhones to be built in the U.S., and I think that's just -- that's the reality of the situation, and that's why they needed to do this, and ultimately, you know, not just for the market but for the tech industry. It would have been would have been -- it would set the U.S. tech industry back a decade if they didn't make this move.

HILL: There are also questions about the United States as a trading partner, as a negotiator at this point, and also the strength of the U.S. economy. How much damage has been done to trust, to confidence in the U.S. and in this administration?

IVES: Well, part of the issue is that you don't know rules of the game, and they can change by the hour, by the day. And look, that makes it tough for companies to plan CapEx, in terms of big purchases, spending, budget cycles and I think that has been the issue, it becomes a self-fulfilling prophecy, like the snowball starts and it is hard to stop it. You can't stop it as it goes downhill.

So that's something, especially when it came to U.S. tech. If this lasted a few weeks, a month in terms of these type level tariffs coming out of China, it would have been something that I think we would look historically and it could have ruined the industry, I think for years and that is what is happening right now.

I mean, you're playing this game of high stakes poker with China.

HILL: High stakes poker. There is all this uncertainty. I mean, you mentioned the supply chain, this constant on again, off again of the tariffs that could also impact just the supply chain alone.

IVES: Well, of course, because you can't all of a sudden -- it is not like a light switch that you put it back on, and I think that has been the issue is that how these companies navigate? There is a lot of ripple effects across the world and that's what happens when you're dealing with a global supply chain.

But the reality is the first step to taking the Armageddon situation off the table is this, stock markets going to be, you know, I think very strong especially in tech as we look into Monday. But we are not over yet, right? I mean, this is a spider web to navigate.

HILL: As you mentioned, it is tough when you don't know the rules of the game. I think I may be paraphrasing what you said there, but as we look into this week, right? So this sort of we learned about this, it was kind of late last night that actually it went into effect. What else, as you look at where things stand in this moment and the standoff that we have between the U.S. and China at this point, where else do you see some wiggle room, potentially for dropping some of these tariffs?

[18:10:19]

IVES: Well, the first thing is you need deals on the table with other countries, whether it is Vietnam, South Korea, you need deals on the table to show deals could get done and that is something that needs to happen I think this week, and then when it comes to China --

HILL: What if those are deals that China makes though?

IVES: -- you have to -- look, for China, they are going to be playing their own game, right, in terms of you know what they're trying to ultimately play, and you're negotiating with someone that doesn't have midterm elections and they play hundred-year battles, right? So that's part of it.

But ultimately the first step that at least we had to do to make sure our economy doesn't automatically go into recession, was this move today.

HILL: You talk about automatically going into recession. I am sure you've heard these comments from the CEO of BlackRock, Larry Fink. In case our viewers did not hear them, I just want to play what he said about a recession on CNBC. Take a listen.

(BEGIN VIDEO CLIP)

LARRY FINK, CEO, BLACKROCK: Yes, I do believe we are probably starting, if not, we are in a recession. Post-World War II was a global stabilizer. We are the global destabilizer.

In the short run, I am petrified at some of these issues.

(END VIDEO CLIP)

HILL: He is petrified. He says we may already be in a recession. Would you agree?

IVES: It is a coin flip. I'd say it is 50/50 right now, recession, but we are going into a definitely slow economy, and the problem is, and you said before, uncertainty.

Uncertainty drives more and more, you know, worries and you look what's happened to bond market. You look what's happened to the weak dollar. I think that's something that's playing out front and center in the market and that's why they had to do something over this weekend to scale it down and Silicon Valley talked and they heard it.

HILL: Yes, really quick before I let you go, we've talked a lot about the bond market in terms of the dollar, the weakness we've seen in the dollar. We initially heard from the President that he wanted to see a weaker dollar. Why would that be a win for the U.S.?

IVES: Yes, a weaker dollar is not viewed positively by anyone in the market and there is more -- you can't bully the bond market and the bond market rules the markets. And I think that -- it is ultimately that ten-year, that ten-year is ultimately what is really dictating more and more, I think what we are going to see in policy.

HILL: Yes, we will. We are all -- especially those of us who maybe didn't pay as close attention to it before, we certainly are now.

Dan, really appreciate your insight. Thank you.

IVES: Thank you.

HILL: Still to come here, Donald Trump's envoy, Steve Witkoff very busy this weekend conducting high stakes nuclear talks with Iran. What came out of those talks and what comes next? Also a closer look at just how he has become the president's most important diplomat.

Plus, dozens of Department of Homeland Security staff forced to take lie detector tests. Many of them were told have failed those tests. What we know about the Trump administration's efforts to find leaks. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[18:17:47] HILL: Delegations from the U.S. and Iran are set to meet again next week after wrapping up what is being described by both sides as a constructive set of talks today about Iran's nuclear future. Those talks held in Oman.

The communication was largely indirect, with the Omani foreign minister relaying messages between the two delegations, who were seated in separate rooms. The talks, though, were the first real contact between an Iranian official and a member of the Trump administration. That official, Middle East Envoy Steve Witkoff, and the meeting in Oman with Iran came just one day after Witkoff was in Russia. You just saw him in that photo there with Vladimir Putin.

He met with him for more than four hours talking about the war in Ukraine. He is doing a lot of this pretty much by himself on his own jet. Here is CNN's Alex Marquardt now with a closer look at how Witkoff has risen from being a New York City developer to arguably Donald Trump's most important diplomat.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice over): This is the first time we've seen images of Vladimir Putin meeting with a U.S. official in almost four years.

This U.S. official, Steve Witkoff, is different and is making a habit of this, sitting down with Putin for the third time just this year. It comes amid a flurry of new contact between the U.S. and Russia, which, so far, has made little progress at ending the war in Ukraine.

It's being led by Witkoff, who's a longtime friend and donor of Donald Trump's and a fellow New York billionaire real estate developer. Despite zero diplomatic experience, Trump tapped Witkoff to be his envoy to the Middle East.

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: Steve Witkoff, who just got back from the Middle East and he's done a fantastic job. He's a -- he's a great dealmaker.

MARQUARDT: It's a huge job, which only got bigger when he took on the Russia portfolio. And this weekend, Witkoff is set to add more, meeting with Iran's Foreign Minister to try to hash out a new nuclear deal. Iran's nuclear program, the Russia-Ukraine war and a ceasefire in Gaza, each a monumental task on its own.

And Witkoff appears to be doing much of it himself, traveling around the world on his own private jet, with little to no staff or officials with him.

STEVE WITKOFF, U.S. SPECIAL ENVOY TO THE MIDDLE EAST: I don't want to put -- put words in President Putin's mouth but I think he's indicated that he accepts what -- he accepts the philosophy of President Trump.

[18:20:11]

MARQUARDT: Many observers of Putin and Russia fear they're playing Witkoff and not actually interested in peace.

TUCKER CARLSON, JOURNALIST: What did you think of him?

WITKOFF: I liked him.

CARLSON: Yes.

WITKOFF: I thought he was straight up with me. In the second visit that I had, you know, it got personal.

The president -- President Putin, had commissioned a beautiful portrait of President Trump from the leading Russian artist and actually gave it to me and asked me to take it home to President Trump, which I brought home and delivered to him.

MARQUARDT: Trump is increasingly frustrated with the lack of progress in Ukraine and now, Witkoff's main accomplishment so far, the ceasefire in Gaza has fallen apart, with Israel resuming military operations against Hamas.

WITKOFF: I would encourage Hamas to get much more sensible than how they have been.

MARQUARDT: Trump and Witkoff met in the 1980s. Like Trump, he has now moved to Florida. His son, Zach, is a co-founder of a cryptocurrency company that's backed by Trump and his sons. Crypto site CoinDesk reported today that the company recently lost $125 million.

Few had heard of Witkoff when he was out golfing with Trump last September, when a gunman fired shots and Witkoff watched Secret Service spring into action.

WITKOFF: The entire team converged on top of him, except for the snipers.

MARQUARDT: Now he's the toast of the foreign policy world, seen by global leaders as the best way into Trump, overshadowing the Secretary of State, Marco Rubio.

Who does not have as close a relationship.

Alex Marquardt, CNN, Washington.

(END VIDEOTAPE)

HILL: While the kremlin described Witkoff's talks with President Putin as productive, it comes as the U.S. pushed for a deal to end the war in Ukraine, really appears to have stalled.

Joining me now to discuss, Jill Dougherty, former CNN Moscow Bureau Chief and Adjunct Professor of Russian Studies at Georgetown University.

Jill, always good to talk to you.

So President Trump posted on social media yesterday on Truth Social that Russia "has to get moving," saying "too many people are dying in a terrible and senseless war." I wonder, does a post from Donald Trump and does this public shift toward Vladimir Putin actually hold any sway with him?

JILL DOUGHERTY, CNN RUSSIAN AFFAIRS CONTRIBUTOR: Well, that's all in the mind of Putin, but, you know, you have Steve Witkoff who is obviously a man that President Trump believes can really do a deal if anyone can, but you've got master negotiator, Vladimir Putin. I mean, he has been the President of Russia for a quarter century. He has dealt with numerous presidents and other heads of state.

And so I think there is definitely frustration in the White House, no question, because we all know President Trump wanted this over ASAP right at the beginning of his presidency, and it is not happening. And I think there is very little question that Putin is stalling, now, and he continues -- but I should add, he continues, Putin continues to say, but let's have a better relationship. So that other side of it let us, you know, have a reset with Russia continues, so it is kind of like two sides in this game.

HILL: Which is fascinating, too, because there is always this sense that that's something that President Trump would really want, right? And he talks about wanting that meeting with Putin.

I wonder when we see this photo op, we see Vladimir Putin with Steve Witkoff. How important is that image inside Russia in terms of the message that it sends?

DOUGHERTY: Well, you know, I was looking at the Russian media, Erica, just a few minutes ago. I mean, they are kind of positive, but there is -- a lot of the commentary is careful because I don't think anybody really knows exactly where this is going and if Putin is stalling, then there is a reason, and I think Putin is stalling -- this is my personal idea -- because he really feels that perhaps he can influence President Trump to give Russia a better deal.

And that's why look what just happened last week, the Russian-American young woman, Ksenia Karelina, was released from prison. You know, so these sweeteners that Putin is offering and by the way, maybe we can talk by phone -- all of these things. Let's improve the relationship.

But another factor in all of this, which makes it even more complicated, deals with what you were talking about just a few minutes ago, and that's the trade war and the trade war, President Trump's trade war is having an effect on oil prices, and oil prices are going down, which hurts Putin's economy.

So the Russians are having a little difficulty, you know, saying, yes, we are glad things are getting better, but, they don't want to say what's happening to our oil price? So it is complicated.

[18:25:08]

HILL: Yes, and there is also this discussion, of course, of potentially secondary sanctions on countries that buy Russian oil. Should the Trump administration feel that Moscow is dragging its feet a little bit too much on Ukraine deal? All of that is playing out in this moment.

DOUGHERTY: Exactly. But so far, I think you would have to say that its rhetoric coming from the White House and really not action. I mean, they have not. In fact, in the tariffs that were leveled on everybody around the world, practically, Russia was not tariffed. And so, you know why? Well, the White House said we don't have that much trade. It is really not significant.

But I think it is significant that Russia was not included, whereas Ukraine, which has much less was.

HILL: Yes, I think that is -- you know, that was certainly picked up on, I will say, and I am with you on that, Jill. It is impossible to ignore.

Always good to talk to you. Thank you.

DOUGHERTY: Thank you.

HILL: Just ahead here, the Trump administration says they know where the Maryland father of three is. He is the man, of course, who was mistakenly deported to El Salvador.

CNN takes you inside the notorious mega prison where he is being held. Stay with us. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[18:30:46]

HILL: Breaking news tonight, the Department of Justice says it has located Kilmar Abrego Garcia. The department says he is, quote, "alive and secure" in El Salvador's notorious mega prison.

Abrego Garcia is, of course, the Maryland husband and father who was mistakenly deported to El Salvador due to what the DOJ calls an administrative error. This comes after a federal judge demanded daily updates about Abrego Garcia's status. The Supreme Court has ordered the Trump administration to facilitate his return.

Also, this week CNN's David Culver had exclusive access to that prison where deportees are being held and filed this report.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP)

DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT (voice over): When we first walked in to these halls, CECOT was a powerful symbol across Latin America. But now since, folks in the U.S. are far more familiar with what's happening here because it has a direct connection.

Last time we were here, there were about 80 or so people per cell. I'm looking right now and it's already 70 who have come out and they've probably got another 30 plus. You're talking more than a hundred people in some of these cells now. And the director has told me they've increased the prison population because more arrests have taken place within this country.

BELARMINO GARCIA, PRISON DIRECTOR, CECOT: Buenos dias.

ALL: Buenos dias.

CULVER (on camera): Why are there more people?

GARCIA: (Foreign Language).

CULVER: He says the state of exception, essentially the state of emergency that's been declared under President Bukele, going back 2022, will not end until the last gang member has been taken from the communities and brought here to CECOT.

This is a court hearing that's playing out right now. This is a preliminary hearing that's playing out. There's one in there, and this one hasn't yet started and they're going to let me see.

Anderson Cooper last night was asking me, is everyone in CECOT convicted?

GARCIA: No, no todos. Muchas ...

(END VIDEO CLIP)

CULVER (voice over): Garcia says many here have been convicted, but others are still going through the judicial process. And when we ask, he doesn't allow us to sit in on what appears to be court hearings underway.

(BEGIN VIDEO CLIP)

CULVER (on camera): I hear you when you say that there are people who have done horrible things. But, is it possible that there are people who are innocent as well in here?

GARCIA: (Foreign language).

(END VIDEO CLIP)

CULVER (voice over): Garcia claims every person in CECOT is an active member of a terrorist organization.

(BEGIN VIDEO CLIP)

CULVER (on camera): And you're confident that that's the case.

GARCIA: Es correcto.

(END VIDEO CLIP)

CULVER (voice over): Critics have said there's a lack of due process. So, it's impossible to say for sure.

(BEGIN VIDEO CLIP)

CULVER (on camera): Questions have been raised about that severity of treatment, and it is seen certainly as harsh. But, when you talk to Salvadorans, they say, yes, perhaps harsh, but totally necessary to have eradicated the gangs and to keep them out. The question is, is that same level of treatment necessary when it comes to the deportees that are coming here from, say, the U.S.?

But, if you look just straight down there at the very end, that's Sector 8. That's where the deportees, including those from Tren de Aragua, are being held. We cannot go into that sector. When I ask why, he says, it's not part of this approved tour.

GARCIA: (Foreign language)

CULVER (on camera): He said, everybody has got the same conditions. It doesn't matter where you are, including in Sector 8.

There are four zones. And in each zone, you have two modules, the sectors that have also within them, the cells, and they can have up to 5,000 prisoners within each module.

(END VIDEO CLIP)

CULVER (voice over): That's a maximum capacity of 40,000, which Garcia says they're getting closer to, but he adds they still have sufficient space. He won't give the exact prison population for security reasons, he says.

[18:35:00]

(BEGIN VIDEO CLIP)

CULVER (on camera): The CECOT isn't just a prison. It's a message from this government to the gangs and really to the rest of the world. For critics, this is a place where rights vanish. But, for supporters of which there are many, including the leaders here and many of the people live in this country, this place is a symbol of freedom, newfound freedom, as they see it. For them to see this exist in a way it does, while some may perceive it as harsh, they see it as the only reason they're able to walk freely outside these gates, and not live in fear for most of their lives.

Gracias.

(END VIDEOTAPE)

HILL: Thanks, again, to David Culver for that report.

Still to come here, sensitive taxpayer data will soon be in the hands of the Department of Homeland Security. How Trump officials say they plan to use that information to track down undocumented immigrants. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[18:40:33]

HILL: Tonight, CNN is learning the Department of Homeland Security has administered lie detector tests to about 50 staffers recently, including FEMA's acting administrator and roughly a dozen officials at the agency. Whistleblower support organizations are concerned over the use of these lie detectors on federal employees, accused of leaking non-classified information and they warn the practice could also potentially be illegal. CNN Correspondent Gabe Cohen joining me now with this new reporting.

So, Gabe, what else have you learned?

GABE COHEN, CNN CORRESPONDENT: So Erica, first of all, the Department of Homeland Security is standing by its use of these lie detector tests. A spokesperson telling me in a statement, quote, "DHS is unapologetic about its efforts to root out leakers that undermine national security. We are agnostic about your standing, tenure, political appointment or status as a career civil servant - we will track down leakers and prosecute them to the fullest extent of the law."

Now, to be clear, government agencies past administrations have used lie detectors to catch leakers, but usually it has been for classified and highly sensitive national security information. And so there's really this growing concern at FEMA where these tests are primarily being used because of alleged media leaks.

Now, several of the officials tested failed their polygraph according to that DHS spokesperson. Although, she wouldn't specify exactly what information they're accused of leaking. One of them was placed on administrative leave and actually escorted out of FEMA's office this week and we've also learned that FEMA's acting administrator, Cameron Hamilton, a Trump appointee, was also tested but he was cleared according to DHS.

So, all of this, Erica, creating a lot of tension and a lot of fear at FEMA.

HILL: Yes. And I would imagine that fear is rife among employees there. Are any of them speaking?

COHEN: Yes. So, the FEMA officials I have spoken with are using words like witch hunt and garbage to describe these tests. One official told me, quote, "I find it very, very hard to believe that within the normal course of business, any of these employees had their hands on classified material. They are trying to incite fear. They are trying to get rid of people."

Remember, President Trump and his allies have been criticizing FEMA really for months now as ineffective and unnecessary. And Homeland Security Secretary Kristi Noem has promised to eliminate the agency altogether.

And as you mentioned, Erica, whistleblower support organizations also now raising concerns about these lie detector tests and in particular the high volume of tests that we're now seeing. One of them telling me, quote, "What used to be a sensitive, carefully considered high- risk decision is now a knee-jerk reaction," and that they say, Erica, is what makes this scary.

HILL: Really important reporting. Gabe, appreciate it. Thank you.

COHEN: Thank you.

Social Security is now listing thousands of living immigrants as dead as part of a new Trump administration policy that's aimed at driving immigrants to self-deport. The policy cancels the Social Security numbers, which then ends a targeted immigrant's ability to work or access benefits. CNN's Rafael Romo has been following these developments for us.

So, who specifically is being targeted here? And also, who is deciding who ends up on that list of, you know, quote-unquote, "dead"?

RAFAEL ROMO, CNN CORRESPONDENT: Yes. Well, Erica, so far those being targeted seem to be people who according to the administration were in trouble with the law, but we have yet to see evidence of crimes they have allegedly committed. And the Department of Homeland Security is the one deciding who is included on that list.

The Social Security Administration already has a list previously created to track people who have passed away. It is now also going to be used to invalidate legally obtained Social Security numbers that were given to some immigrants according to an official. The Trump administration is hoping this will drive these Immigrants to self- deport, given that it will become virtually impossible for them to do most financial transactions.

And Erica, according to a White House official, the Department of Homeland Security has identified over 6,300 temporarily paroled aliens on the terrorist watch list or with FBI criminal records. The administration provided no evidence to back up the assertion. DHS terminated parole for all of these individuals effective April 8th.

[18:45:03]

Furthermore, the Social Security team, the official told us, determined these immigrants were ineligible to receive Social Security benefits and move their Social Security numbers to a list called "Ineligible Master File." This is a new name for a list that used to be called, ready for this Erica, "Death Master File." And this is important, because this file was previously used only for people who had died so that no unqualified individuals would have access to Social Security benefits.

An Atlanta immigration attorney explained to us the severe impact this is going to have on immigrants whose previously valid Social Security numbers were placed on the death master file.

(BEGIN VIDEO CLIP)

DUSTIN BAXTER, IMMIGRATION ATTORNEY: They're going to be cash dependent because even though they have work authorization in these valid Social Security numbers, they're not going to be allowed in most instances to open bank accounts, to cash checks, to apply for credit cards, to lease apartments, to get on their company health insurance. All those things are going to become virtually impossible to them.

(END VIDEO CLIP)

ROMO: And Erica, Trump administration official told CNN, this should not be a surprise to anybody. In a statement, Liz Huston, a White House spokeswoman said the following: "President Trump promised mass deportations and by removing the monetary incentive for illegal aliens to come and stay, we will encourage them to self-deport. He is delivering on his promise he made to the American people."

But Dustin Baxter, the immigration attorney we spoke with, told us that the immigrants affected by this action are all people who were vetted before they came to the United States and were paroled in lawfully. This action targets immigrants who have Social Security numbers and may have entered the United States under programs that have ended like the Biden administration's temporary work programs, Erica.

HILL: Wow. It is a lot. Rafael, really appreciate it. Thank you.

Still to come here tonight, the Trump tariffs now driving up the cost of a cup of coffee. We're going to sit with one coffee shop owner about how he is navigating that. Stay with us. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[18:51:47]

HILL: That delicious cup of joe you look forward to every day, going to be a little more expensive. CNN's Isabel Rosales takes us to a coffee shop where owners and customers alike are concerned about just how President Trump's sweeping tariffs are going to soon hit that morning cup of joe.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: We love coffee. America runs on whatever coffee company.

ISABEL ROSALES, CNN CORRESPONDENT (voice over): Americans may soon have to start rethinking their morning beverage routine as President Trump's new tariff policy is about to brew up trouble for the coffee industry.

(BEGIN VIDEO CLIP)

DONALD REESE, COFFEE MAN COFFEE SHOP CUSTOMER: It's hurting like the everyday person that will say a 10 percent increase is a lot. It might not be a lot to our administration, but to us, every day we drink it, it is a lot.

(END VIDEO CLIP) ROSALES (voice over): Coffee beans can only grow in tropical climates, so the U.S. imports its coffee beans mostly from Brazil, Colombia and Vietnam along the coffee belt. It cannot be grown in most of the U.S., except for primarily in Hawaii.

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DEVIN HUNTER, CO-OWNER, COFFEE MAN COFFEE SHOP: This right here is the last shipment of coffee beans from Honduras that we'll get before the 10 percent tariffs come into effect.

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ROSALES (voice over): Devin Hunter, the co-owner of Coffee Man in Atlanta, tells us coffee from Brazil is already up nearly 30 percent over the past year, because of unfavorable growing conditions. And now these tariffs make it a one-two punch.

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ROSALES (on camera): Is it more a matter of this just being slightly aggravating, or is this like a five-alarm fire.

HUNTER: It's going to affect every coffee shop in America, I think, you know. Every coffee roaster, every coffee shop - it's going to affect everyone. So I think everyone is going to kind of feel the pain, the pain from this, because it's like your latte is probably going to go up.

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ROSALES (voice over): President Trump says part of the incentive behind tariffs is to produce more things in America.

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HUNTER: That's nice in theory except that coffee can't really be grown in America. So, it's like, I wish they maybe had thought that through and there could be some exceptions for coffee.

ROSALES (on camera): But here's the problem, the USDA forecasts we'll consume nearly 3 billion pounds of coffee beans, yet only 1 percent of it can be sourced domestically. That's according to the nation's largest trade organization.

Experts tell CNN there's simply no way we can just grow more coffee here in the United States. We have to import.

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ROSALES (voice over): Hunter says unless something gives over the next month, he'll likely be forced to raise prices.

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ROSALES (on camera): Some people would say, well, you as a business should absorb that 10 percent, not pass it along to the consumer. What do you say to that?

HUNTER: If we tried to absorb it, we might not be able to exist as a business.

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ROSALES (voice over): It's now a mad scramble to stockpile beans at pre-tariff prices.

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HUNTER: I'm making our Vietnamese cold brew. So, it's a coffee that we roast from Vietnam, and it has a really nice smokey flavor.

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ROSALES (voice over): And even tariff shopping coffee nations, which means at a whopping 46 percent tariff, Vietnam doesn't make the cut.

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HUNTER: Yes. That one hurts a lot, because Vietnamese is one of my favorite coffees. That's the one that I'm having to look at the most. We're not going to be able to contract any coffee from Vietnam. We just may not be able to do it.

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HILL: And our thanks again to Isabel Rosales for that report.

In a new episode of "United States of Scandal," Jake Tapper unpacks the shady dealings of notorious D.C. lobbyist, Jack Abramoff. He was known for his influence on the inner workings of D.C. politics and was then exposed for conspiracy, fraud, and tax evasion, sending shockwaves across the country. Here's a preview.

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UNIDENTIFIED FEMALE: Abramoff had four skyboxes, 22 seats in each box.

[18:55:04]

Every night, they were being filled by congressmen who were holding fundraisers.

JAKE TAPPER, CNN HOST, "UNITED STATES OF SCANDAL": And he even opened a restaurant called Signatures which attracted a very specific clientele.

UNIDENTIFIED MALE: You'd have a couple of elected officials. You'd have policymakers. You'd have other lobbyists there. I mean it became a who's who of Capitol Hill on any given night. It really gave us the ability to create leverage and build relationships.

TAPPER: Tell me about Signatures.

UNIDENTIFIED MALE: Bad food, I'm going to tell you right now.

TAPPER: Really?

UNIDENTIFIED MALE: Oh, yes. Oh, yes. Why do you think he bought a restaurant, because he likes restaurant business? He's getting power.

TAPPER: Was it basically just open bar and free food?

UNIDENTIFIED MALE: I'm assuming most of the White House didn't pay a tab.

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HILL: The season finale of "United States of Scandal" airs tomorrow night 9 P.M., right here on CNN.

Still to come, inside the Manosphere, made up of macho podcasters, influencers, UFC fighters. Our Donie O'Sullivan speaks with one woman who dated only far-right men for a year.

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UNIDENTIFIED FEMALE: It was really difficult to have some of these dates because they were so insecure, because they don't really know who they are and they don't know how to figure that out.

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