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President Trump Express Flexibility on Tech Tariffs, but Temporary; President Xi Jinping to Strengthen Ties with Vietnam, Malaysia and Cambodia; China Halts Rare Earth Mineral Exports; Suspect Arrested in Arson Fire at Governor Shapiro's House; President Trump to Meet with El Salvador President; Zelenskyy Invites Trump To Visit War- Torn Ukraine; Ukraine's Sumy Suffers Deadly Russian Missile Attack; Blue Origin Rocket With All-Female Crew Set For Launch. Aired 2-3a ET

Aired April 14, 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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ROSEMARY CHURCH, CNN HOST: Hello and welcome to our viewers joining us from all around the world and to everyone streaming us on CNN Max. I'm Rosemary Church. Just ahead --

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: We're doing really well and financially our country's going to be stronger than it's ever been.

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CHURCH: U.S. President Donald Trump tries to sell Americans on his tariff plans, but after weeks of trade war whiplash, polling suggests many Americans are not buying it.

A man is now in custody after a brazen arson attack forced the Pennsylvania governor and his family to evacuate their home.

And Ukraine reels after Russia launches its deadliest attack of the year so far, leaving dozens dead on Palm Sunday.

Good to have you with us. The Trump administration is warning that an exemption for many electronics from its latest tariffs won't last long. U.S. Commerce Secretary Howard Lutnick says there's only a temporary reprieve for products like smartphones and laptops and that new tariffs will be announced in a month or two. President Donald Trump says nobody is getting off the hook, but he expressed some flexibility. Here's what he told reporters aboard Air Force One on Sunday.

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TRUMP: We'll also talk to companies, you know, you have to show a certain flexibility. Nobody should be so rigid. We will have to have a certain flexibility. And we're doing really well and financially, our country is going to be stronger than it's ever been.

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CHURCH: Many Democrats, including Senator Elizabeth Warren, are slamming the president for the confusion over his shifting tariff policy.

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SEN. ELIZABETH WARREN (D-MA): You can't get an economy strong and moving forward when it's loaded with chaos and corruption. Investors will not invest in the United States when Donald Trump is playing red light, green light with tariffs.

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CHURCH: A new poll from CBS News shows President Trump's approval ratings dropping -- 44 percent approve of his handling of the economy, down seven points from February. And a broad majority expects at least short-term price increases and economic harm from his tariff policies. So far, global markets have started the week on a positive note, hoping the Trump administration will follow through on those temporary tariff exemptions for tech products.

U.S. futures are in the green hours before Wall Street opens and the Asia-Pacific region markets are also on the rise. Amid the recent market volatility and uncertainty over tariffs, China's President Xi Jinping is visiting Southeast Asia with a message of economic stability and cooperation. He is beginning his trip in Vietnam, followed by Malaysia and Cambodia, three nations targeted by Donald Trump with high tariff rates before the temporary pause.

CNN's Kristie Lu Stout is in Hong Kong. She joins us now live. Good to see you, Kristie. So, take us through the agenda and, of course, the significance of this visit by President Xi.

KRISTIE LU STOUT, CNN CORRESPONDENT: Absolutely, Rosemary. The Chinese president, Xi Jinping, he has touched down in Hanoi. He is on this sort of charm offensive as he takes part in this week-long state visit of these three Southeast Asian nations. These are high-level visits, weeks if not months of planning going on behind the scenes in order to reach this moment.

And the timing is very significant because it signals that China is willing to stand up to the United States as Donald Trump wages his trade war and China is going ahead despite the trade conflict to deepen trade relations across the region in its own neighborhood in Southeast Asia. Xi Jinping is currently in Vietnam. He is there for state meetings later in the week. He will be going to Malaysia and in Cambodia.

Earlier today, he issued a signed letter that was published in Vietnam as well as in Chinese state-run media and he talked about the values of deepening the relationship. This is what he said about Vietnam. Xi Jinping saying, quote, "Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment," unquote. Xinhua reports that the Chinese President will be meeting with the leadership in Vietnam, including the Vietnamese president.

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Reuters, citing anonymous official sources, says that these two countries are set to ink some 40 deals, including a trade deal on rail links. Now, political watchers are watching this very closely. They're saying that Xi Jinping is going to bring love to the region, trade love, at a time when Donald Trump, the U.S. president, is bringing trade animosity.

This is what I heard from Wen-Ti Sung. He is a Taipei-based political analyst, nonresident fellow of the Atlantic Council. I asked him about this visit, and this is what he had to say. He said this. "Xi is going to show them love, perhaps signing some new trade deals or some new upgrades in their strategic partnership agreement. All these are ways for China to kind of show, I'm on your side. It's safe to hang out with China, especially if you're concerned about the U.S."

Now, Southeast Asia is a close trading partner of China, as well as the United States. So, this regional bloc will need to tread very carefully. You probably remember that Vietnam, as well as Cambodia, were two of the, quote, "worst offenders" on U.S. President Donald Trump's reciprocal tariff list, and if we bring up before the 90-day pause what those tariff rates look like, they look like this.

Like, Vietnam was facing a reciprocal tariff rate of 46 percent, Cambodia of 49 percent, Malaysia of 24 percent. All these countries have reached out to the United States for trade talks or some tariff relief. But today, all eyes on Vietnam as they welcome Xi Jinping, they roll out the red carpet for the Chinese leader, looking to ink new trade deals, but also looking not to upset Donald Trump, Rosemary.

CHURCH: And Kristie, meantime, more confusion on Trump's tariff policy, with officials now saying the tariff exemptions on tech are temporary. So, how's that being received in China and throughout the region?

STOUT: Yeah, we heard from Howard Lutnick, the U.S. Commerce Secretary of the weekend. He was supposed to offer more clarity about these tech tariff exemptions, but instead he just added more confusion and chaos. On those exemptions, he basically said this, that the exemptions are temporary and they'd be subject to future levies on semiconductors that would be added, in his words, a month or two.

Now, on Sunday, we did hear from a spokesperson of China's Ministry of Foreign Affairs who addressed the exemptions and the spokesperson called it a, quote, "small step" towards correcting America's, quote, "erroneous practice." Some choice words there, Rosemary.

CHURCH: Indeed. Kristie Lu Stout joining us live from Hong Kong. Many thanks.

Justin Wolfers is a professor of economics and public policy at the University of Michigan. He joins me now from Ann Arbor. Good to have you with us.

JUSTIN WOLFERS, ECONOMICS & PUBLIC POLICY PROFESSOR, UNIVERSITY OF MICHIGAN: Hey, Rosemary.

CHURCH: So we are all experiencing whiplash from Donald Trump's tariffs. Now he's saying exemptions on iPhones and other electronic goods from China are not permanent despite announcing these exclusions on Friday. What impact does chaotic back and forth like this have on the economy and investments?

WOLFERS: Yeah, it's just absolutely bonkers. Even on my worst day, my moods don't go up and down like this. The tariff on semiconductors went from 85 percent a couple of days ago to 125 percent. But then they actually remembered when they said 125, they meant 145. Then he got rid of them and then he said they're coming back awfully soon. Boy, that feeling is whiplash.

And the thing is, these are tariffs not just on smartphones, but on semiconductors, which are a vital input into car manufacturing, into drones, into defense equipment and so on. And so what you have is companies all around the country and around the world having to literally rewrite their business plans day by day and sometimes several times in the course of a day. It's enough to make you say, if you're a CEO, hold on, I'm just going to pause for a while. I'll see how all this shakes out and maybe when things calm down, I'll get back to business.

CHURCH: Yeah, its extraordinary strategy, isn't it? And White House officials are saying they expect deals will be reached in the next few weeks with various nations, including Japan, Vietnam, South Korea and Israel. What might some of these deals look like, do you think, for dozens of countries trying to avoid Trump's steep tariffs while his 90-day pause remains in place for most nations except China?

WOLFERS: So many of these countries, in fact, already charged the United States either zero tariffs or awfully close to zero. So that was before. Trump starts a trade war and says, I want a better deal. The problem is tariffs can't go below zero. That means that he's basically going to get us back to where we were. So expect a lot of rosy announcements in the Rose Garden as Trump brings world leaders in and says, isn't it extraordinary? I've created close to free trade between this country and the United States. The reality and the thing we all need to remember is that's where we were three weeks ago.

CHURCH: And of course, Trump's trade war with China is escalating, with Beijing now suspending exports of rare earth minerals required for auto parts.

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What impact might this decision have on global markets and when might we see a deal reached between the U.S. and China, given Trump insists that those negotiations are imminent, apparently?

WOLFERS: Yeah, what an extraordinary moment. So what you had was Trump imposing tariffs of 125 percent on China, which basically was a way of saying for an American manufacturing firm that wants to import goods, inputs from China, he's made it incredibly expensive. You know what China did? Actually, they said more of the same. You're going to make it expensive. I'm going to make it impossible. So whatever Trump thought he was doing, the Chinese just did more of it and of the exact same form.

Look, these rare earth minerals are incredibly important. They're a critical input into a range of manufacturing. And it's China showing that it can exert incredible economic might by being strategic in the way it's using tariffs and surgical and really hitting American industry right where it hurts. Now, a lot of folks in the U.S. have already saved up enough of these minerals to get them through a few months. But this show of might is one that's going to have a whole lot of American manufacturers terrified because if Trump doesn't fix this problem, their businesses are really going to be in trouble.

CHURCH: So, Justin, with all that in mind, how do you expect U.S. markets to respond to all this when they open in the coming hours?

WOLFERS: Well, we've already seen the futures open as they do on a Sunday night. And so remember, this is a weekend in which both Trump said, well, I'm going to back off on tariffs on semiconductors, and then he said, but I'm putting it back on in a couple of weeks. So, as you might imagine, when you give someone something and then take it away and basically nothing happens in between, I actually don't expect a big early movement.

Now, what I do expect to see is if the clown show continues, if they can't make up their mind what they're doing, if they can't rationalize it, they can't justify it, and there's no coherent economic strategy, we'll see even more energy sucked out of markets as people become even more despondent about, frankly, the incompetence coming out of this White House.

CHURCH: Justin Wolfers, great to have you on. I appreciate it.

WOLFERS: Pleasure.

CHURCH: Pennsylvania police say a 38-year-old man is in custody in connection with an arson attack at the home of the state's governor. Although firefighters were able to put out the flames, the house was significantly damaged. Governor Josh Shapiro's family was woken up by police and evacuated. The governor says the attack was targeted, but it won't deter him from his work. CNN's Danny Freeman has more from Philadelphia.

DANNY FREEMAN, CNN CORRESPONDENT: It was an extremely troubling and frightening night in Pennsylvania's capital after Governor Josh Shapiro's mansion, the Governor's Mansion residence was set on fire intentionally, according to Pennsylvania State Police. The main headline that we learned Sunday afternoon is that there was a suspect taken into custody, 38-year-old Cody Balmer will be charged with attempted murder, terrorism, aggravated arson and aggravated assault. That's according to the Dauphin County District Attorney.

But here's a little bit of a timeline of the best that we understand as to how this all unfolded. On Saturday evening, Governor Josh Shapiro was holding a Passover Seder for the first night of the Jewish holiday of Passover. He was with his family. He had guests over at the governor's residence as well. They all then went to sleep. And then at some point in the middle of the night just before 2:00 a.m., Pennsylvania State Police say this man, Balmer, jumped a fence at the governor's residence, evaded state troopers who at that time actually realized that there had been a breach.

The man was then able to break into the residence, set fire to the residence, escape then by jumping back over the fence. He had homemade incendiary devices on him, according to Pennsylvania State Police. Then at 2:00 a.m., Governor Shapiro said that he and his family and some of his guests who were staying over were woken up by bangs on the door because first responders were alerting him that part of the residence was on fire.

Thankfully, though, the fire was in a different part of the building from where the governor, his wife, family and guests were. And first responders were able to knock that fire down. Amazingly, no one was injured. But again, now there is a multi-agency investigation ongoing into exactly what happened here. The investigation being led by the Pennsylvania State Police, but also being assisted by the FBI.

And I just want you to listen to how Governor Shapiro characterized what he was feeling after this entire incident, clearly overwhelmed by the level of support that he's received from so many across the country after this incident. But also, he said that he will not be deterred by violence from doing his job or by practicing his faith.

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JOSH SHAPIRO, GOVERNOR OF PENNSYLVANIA: This kind of violence is becoming far too common in our society. And I don't give a damn if it's coming from one particular side or the other, directed at one particular party or another or one particular person or another. It is not okay.

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FREEMAN: Now, Pennsylvania State Police investigators say that this investigation is ongoing and they're also reviewing security protocols at the governor's residence. At this time, CNN has not been able to get in contact with an attorney for Ballmer. Danny Freeman, CNN, Philadelphia.

CHURCH: CNN senior law enforcement analyst Andrew McCabe says the breach in security is very concerning. He breaks down the incident step by step.

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ANDREW MCCABE, CNN SENIOR LAW ENFORCEMENT ANALYST: Really for me, the biggest thing we learned were the details about how serious this massive breach of security was and how close this person came to really inflicting mortal harm on the governor, his family and the other guests in the house. So let's think about this. You have an attacker who goes over the fence while armed with homemade incendiary devices.

He traverses the property and while doing so evades the search. They knew he'd gotten over the fence and yet he was able to evade their search. Once you get inside the fence, it's really a matter of seconds before you should be picked up and intercepted by law enforcement, right, to get to the residence and then into the residence. Just really a shocking breach of security and one that could have very easily led to the loss of life.

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CHURCH: Our thanks to Andrew McCabe for his insight there. Donald Trump brushes off claims of human rights abuses at El Salvador's CECOT prison as he gets ready to meet the country's leader. More on the Trump administration's crackdown on migrants. That's just ahead.

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CHURCH: Welcome back everyone. In the coming hours, U.S. President Donald Trump will meet with Salvadoran President Nayib Bukele at the White House. The Trump administration has deported hundreds of migrants it claims are gang members to El Salvador's CECOT mega prison. On Sunday, Secretary of State Marco Rubio announced it had sent 10 more alleged gang members there. President Trump also denies that there may be human rights violations in CECOT prison.

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TRUMP: I think he's doing a fantastic job and he's taking care of a lot of problems that we have that we really wouldn't be able to take care of from a cost standpoint. And he's doing really -- he's been amazing. We have some very bad people in that prison. People that should have never been allowed into our country. People that murdered -- drug dealers, some of the worst people on earth are in that prison.

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CHURCH: Meantime, the Trump administration is refusing to comply with a federal judge's directive to facilitate the return of a migrant mistakenly deported to El Salvador. Kilmar Abrego Garcia is a migrant with protected status. The Trump administration insists it's not required to work with Salvadoran officials to secure his return. The Justice Department says federal courts have no authority to direct the executive branch on how to conduct foreign relations.

And officials have a duty to only, quote, "remove any domestic obstacles" to Abrego Garcia's return to the U.S. Abrego Garcia's attorneys say he fled gang violence in El Salvador more than a decade ago. Despite his protected status, he can still be removed from the U.S., just not to El Salvador. CNN's Isabel Rosales walks us through President Nayib Bukele's sweeping crackdown on gang violence in the country.

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ISABEL ROSALES, CNN CORRESPONDENT (voice-over): Nayib Bukele swept into office in 2019, becoming El Salvador's youngest ever president at just 37. The former advertising executive adopted numerous unorthodox policies, such as making El Salvador the first country in the world to accept Bitcoin as legal tender. In March 2022, he declared a state of emergency and began a mass crackdown on gangs, suspending constitutional rights and giving police the authority to detain anyone they suspected to be involved in gang activity, resulting in more than 80,000 people being in prison since.

Crime rates have plummeted since the crackdown, boosting Bukele's popularity both in his own country and in the surrounding region. In 2024, he easily secured a second five-year term, winning with more than 80 percent of the vote. But many human rights organizations say Bukele's government has wrongfully imprisoned thousands of innocent people.

ANA PIQUER, AMERICAS DIRECTOR, AMNESTY INTERNATIONAL (through translation): The testimonies we have obtained of arbitrarily detained people under the state of alarm affirm tortures, cruel, inhuman or humiliating treatments have become habitual practices in prisons.

ROSALES (voice-over): Part of this crackdown included the building of the massive and now-infamous CECOT Prison Complex or terrorist confinement center that can house up to 40,000 people. In recent weeks, the prison has housed alleged gang members deported by the Trump administration in exchange for money. And Bukele reached an agreement with the administration to potentially even imprison criminals who are U.S. citizens.

MARCO RUBIO, U.S. SECRETARY OF STATE: He has offered to house in his jails dangerous American criminals in custody in our country, including those of U.S. citizenship and legal residence.

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ROSALES (voice-over): Bukele has been accused of authoritarianism and has even described himself as the world's coolest dictator. In recent years, he has worked to align himself with conservatives in the United States, including speaking at the Conservative Political Action Conference in 2024 and promoting himself as the United States' top ally in Central America. Isabel Rosales, CNN.

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CHURCH: Ecuador's president won re-election in a runoff Sunday, but his rival is rejecting the results and will call for a recount. Daniel Noboa says there's no doubt he won by more than a million votes. Both he and challenger Luisa Gonzalez vowed to crack down on rampant gang violence and to improve Ecuador's ailing economy. Noboa's supporters flooded the streets of Quito to celebrate his victory. The son of a billionaire businessman says he will partner with U.S. troops to fight crime.

While the Trump administration continues negotiations with Russia, Moscow launched its deadliest attack on Ukraine so far this year, just ahead the latest on the aftermath in the city of Sumy.

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CHURCH: As the White House attempts to negotiate an end to the Russia-Ukraine conflict, Ukraine's president is calling on the world to put pressure on the aggressor.

In an interview with "60 Minutes", Volodymyr Zelenskyy invited President Trump to visit Ukraine to witness firsthand the threat that Russia poses to the West.

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VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: You think you understand what's going on here? Okay. We respect your position. You understand?

But please, before any kind of decisions, any kind of formats of negotiations, come to see people, civilians, warriors, hospitals, churches, children destroyed or dead. Come, look, and then let's -- let's move with the plan how to finish the war. You will understand with whom you have a deal. You will understand what Putin did.

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CHURCH: On Palm Sunday, Ukraine suffered the single deadliest Russian attack since 2023. Two ballistic missiles hit the northern city of Sumy, leaving at least 34 people dead and more than 100 injured.

President Trump says he was told Russia, quote, made a mistake following the strike on crowded residential areas. But in an attempt to push Ukrainian forces further from the border of Russia's Kursk region, the Kremlin is intensifying its aggression in the north.

CNN's Ben Hunte takes a closer look at the devastating aftermath in Sumy.

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BEN HUNTE, CNN CORRESPONDENT (voice-over): A busy morning in Ukraine, shattered in an instant by a Russian missile strike. Ukrainian officials say two ballistic missiles struck the northeastern city of Sumy, at a time that would have been bustling with people going to church for Palm Sunday.

The city center, now filled with burned out cars, busses and body bags. A place that would have been full of activity before the attack. But one local official says Russia must have known that.

UNIDENTIFIED MALE (through translator): At that time, a lot of people were on the street. The enemy was hoping to inflict the greatest damage on people in the city of Sumy.

HUNTE: Russia has previously denied targeting civilians, but the carnage in Sumy is unmistakable.

PARVIZ MANAKHOV, SUMY RESIDENT (through translator): We live in the city center. There is no military base here. There are no soldiers here.

HUNTE: The city is reeling after the worst single attack on Ukrainian civilians since 2023. Ukrainian officials say there are indications cluster munitions were used in the attack, which can scatter deadly explosives over wide areas.

UNIDENTIFIED MALE (through translator): The first strike on the event hall. We are more or less fine, but the second strike hit us. More cupboards fell. We were lucky that our windows faced the side of the street. Here is their Palm Sunday gift.

HUNTE: The attack on Sumy comes just days after U.S. envoy Steve Witkoff met with Russian President Vladimir Putin in an attempt to speed up peace talks. But Ukraine says Russia is intensifying its attacks as diplomatic efforts drag on, and Ukrainian President Volodymyr Zelenskyy says it's time for the world to get tougher on Russia for its duplicity.

ZELENSKYY: Wars and only when criminal wars are not forgotten and when there is pressure on the aggressor. This is not happening now.

HUNTE: U.S. Secretary of State Marco Rubio called the strikes horrifying, a sentiment echoed by several European leaders. But so far, harsh words and criticism haven't been enough to stop the attacks on Ukraine's civilians.

Ben Hunt, CNN.

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CHURCH: And we'll be right back.

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CHURCH: Welcome back, everyone.

Later today, a star-studded group of female space tourists is set to rocket into history as they take off on Blue Origin's New Shepard 31. The crew is made up of six women, including pop star Katy Perry, journalist Gayle King and Lauren Sanchez, the fiancee of blue origin owner Jeff Bezos. Also on board will be two scientists and a film producer.

The women will soar just over 100 kilometers crossing the boundary into space. They'll get a few minutes to unbuckle and experience weightlessness before returning to earth about ten minutes after takeoff. I want to thank you so much for joining us. I'm Rosemary Church.

"WORLD SPORT" is coming up next.

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Then I'll be back at the top of the hour with more CNN NEWSROOM.

Stick around.

(WORLD SPORT)

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