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Trump Doubles Tariffs On Indian Imports To 50 Percent; Israeli Protesters Demand End To War In "Day Of Struggle"; Trump Again Threatens Sanctions On Russia, But No Deadline Set; Trump Says He's Fired Federal Reserve Governor, Her Lawyer Disagrees. Aired 12-12:45a ET

Aired August 27, 2025 - 00:00   ET

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

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JOHN VAUSE, CNN INTERNATIONAL ANCHOR: The high cost of buying cheap Russian oil. Ahead on. CNN NEWSROOM.

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ANNA COOBAN, CNN BUSINESS AND ECONOMICS CORRESPONDENT: India is about to face one of the highest effective U.S. tariff rates in the world.

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VAUSE: Being punished when others like China buy even more Russian oil which helps finance Putin's war of choice in Ukraine.

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YECHIEL LEITER, ISRAELI AMBASSADOR TO THE U.S.: This war ends when Hamas ends.

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VAUSE: All or nothing demand to stop the fighting in Gaza sparks another day of mass protest, and raises fears for the safety of the last hostages still being held by Hamas.

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UNIDENTIFIED FEMALE: It started with a friendship bracelet, and now there's an engagement ring.

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VAUSE: After a dozen known breakups and a catalogue of hit songs about them, Taylor Swift says yes to longtime boyfriend Travis Kelce.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause.

VAUSE: An additional 25 percent tariff on imports from India into the U.S. has just gone up. A punitive measure for India's ongoing purchase of cheap Russian oil, which the Trump administration says helps finance Moscow's war in Ukraine. Now, a 50 percent tariff is the highest of all U.S. trading partners

in Asia. New Delhi says the move is unjustified and unfair, while pointing to China, another major buyer of Russian oil but with a tariff of 30 percent and facing no punitive actions from Washington. One U.S. official says trade negotiations with China are ongoing and an informal meeting is set for later this week.

And this coming Friday, a tariff exemption on goods sent to the U.S. valued at less than $800 will expire, which means they will lose their duty free status. And ahead of that deadline, postal services around the world have suspended delivery of those so-called small parcels, with Japan, Australia and Taiwan just the latest to do so.

For the U.S., though, there has been one unmistakable benefit from Donald Trump's tariffs. In just one day last Friday, bringing in $22 billion in revenue for the U.S. treasury, with economists forecasting the total for the entire month of August could reach $32 billion.

Well, live to Seoul now, CNN's Mike Valerio is standing by on the latest on the tariffs for India.

So these tariffs are -- will cause significant economic pain for India. But the Prime Minister Narendra Modi, he's made this calculation, I guess, this decision to tough it out. So is the economic value of cheap Russian oil worth it? Or are there other factors at play?

MIKE VALERIO, CNN CORRESPONDENT: So that's exactly the calculus right there. No, I think that those are the essential factors that are involved in this calculation right now even though these punishing tariffs, John, are in play as of a couple of minutes ago.

Does the cheapness of Russian oil continue, Prime Minister Narendra Modi, to continue the course of this ship? Or I'll tell you, a huge change could be made if a huge chunk of the American market is lost if exporters and importers, I should say, across the other side of the ocean start canceling orders one after another that could lead to a huge change in the potential playbook that Prime Minister Modi is looking at here.

So that is the real theme, moving potentially in a new direction. We could, you know, beside the theme of products becoming so much more expensive for Americans who are buying from Indians, the geopolitical, you know, tectonic plates that were looking at here is, will this cause India to move in a new direction because of these tariffs? Specifically towards China and towards Russia.

And evidence of that, John, that we have in the next couple of days, actually this week I should say, Prime Minister Modi is going to be traveling to China for the first time since 2018. Relations hitherto now have not been great between China and Russia, but now we have Modi going to the Shanghai Cooperation Organization, which is a security partnership that was founded between Beijing and Moscow, to try to reshape the global order.

So we have Modi going to China for the first time in years. Putin, who will be traveling to the -- to India by the end of the year and really conversations taking hold in India, saying something to the effect of, you know, China and the E.U. still have trade going on with Russia but are not experiencing these 50 percent punishing tariffs.

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And to that end, you know, we heard Barkha Dutch, she's a renowned journalist in India, speaking with our friend Fareed Zakaria a couple of days ago. Here's what she had to say along those lines in addition to the United States continuing trade with some, and I stress some sectors of the Russian economy. Let's listen.

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BARKHA DUTT, AUTHOR, "THIS UNQUIET LAND": India has pointed out repeatedly to the hypocrisy by the United States, by the Trump administration on this issue. The numbers speak for themselves. $3.5 billion trade value between the United States and Russia in 2024 alone. Millions of value in imports of fertilizers and uranium.

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VALERIO: So when we start to see stocks in India sinking lower, and the real effects of these tariffs come into play over the next couple of days, certainly weeks, another question is, can there be a trade deal reached? That is what could put an end to this in total, 50 percent up to 50 percent levy.

Negotiations, John, have faltered and pretty much stopped cold after not one, not two, but five rounds. But in terms of the other major theme that we're talking about a couple seconds ago, India potentially moving to another corner of geopolitical relations, you know, the U.S. State Department and India's Ministry of External Affairs met with representatives remotely on Monday.

And for what it's worth, the next day, on Tuesday, representatives from both countries came out with a statement reaffirming their commitment to cooperation, military cooperation, security cooperation. India and the United States, along with Japan and Australia, are members of the Quad and leaders of the Quad, be it president or prime ministers, are still supposed to meet at the end of the year.

So a lot of things pulling India in different directions with these new up to 50 percent tariffs -- John.

VAUSE: They are big tariffs and they're going to cause a lot of pain. So we'll see what happens next.

Mike, thanks so much for being with us. Mike Valerio in Seoul.

Tuesday was declared a day of struggle in Israel with hundreds of thousands of protesters taking part in a rally in Tel Aviv, demanding the war in Gaza come to an end and the last hostages brought home. Later on Wednesday, the U.S. president is expected to focus on the Gaza conflict at a large meeting at the White House, according to U.S. special envoy Steve Witkoff. Protest organizers believe more than 350,000 Israelis turned out. And

given the size of Israel's population an equivalent turnout in the U.S. would be around 12 million people.

Here's what protesters had to say about Prime Minister Benjamin Netanyahu and his cabinet's priorities.

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AMI DROR, PROTEST LEADER: It's a political war that the main goal of this war is to keep Netanyahu in his office. He fears his coalition more than anybody else. He fears the coalition more than -- more than the families, more than the protesters. I do believe that with the pressure that will come from the people of Israel stopping the country plus with the pressure that should come from the rest of the world, demanding the immediate end of the war from Prime Minister Netanyahu, I believe if all those things happen together, yes, the war can end now.

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VAUSE: Israel's Security Cabinet was meeting at the same time and sources tell CNN that two-hour long meeting ended without any major decisions. And the latest ceasefire proposal was not on the agenda.

Qatar, which has put forward the current proposal along with Egypt, says the ball is now in Israel's court, adding the current deal, which Hamas has already accepted, is in line with Israel's previous demands.

Meantime, the Israel Defense Forces claim the double-tap strike on Nasser Hospital, which killed at least 20 people, was aimed at what it believed was a camera positioned by Hamas. The IDF claims six of those killed in the strike were terrorists.

CNN's Oren Liebermann reports now from Hostages Square in Tel Aviv.

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OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: Hostage Square here behind me is filling up incredibly quickly right now on this Tuesday evening in what organizers have called a day of disruption across the country. And we saw that start playing out early this morning. That's when protesters blocked major highways across Israel. In some cases, they simply sat down or lay down on the streets.

In at least one case, we saw protesters put themselves in a cage as a symbolic way of referencing the hostages still in Gaza, 50 remain in Gaza, 20 of whom are still believed to be alive. In other cases, Israeli protesters set fire to tires to block roads. And although police say that the roads were cleared fairly quickly, we still saw major highways blocked throughout the course of the day. It all culminates in what you're seeing here behind me.

Hundreds if not thousands already packing Hostages Square in Tel Aviv and more are already on their way from a march from one of the main train stations to fill this up even more. And you get a sense, especially on a Tuesday night, of the anger and the frustration of these protesters calling on the government to accept the deal that's on the table, and to do everything in their power to bring home the remaining hostages.

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There was, in fact, an Israeli Security Cabinet meeting on Tuesday afternoon, but there were no substantive decisions made over the course of that two-hour meeting. And the latest ceasefire proposal on the table, 60-day ceasefire wasn't even on the agenda. That in and of itself has fueled a lot of the anger we're hearing here from protesters.

Even after nearly two years of war, they see it as an obligation to come out here to make sure the 50 hostages remaining in Gaza are not forgotten, and that they do whatever it is that they can to pressure the government to accept the deal that's there right now, one that is very similar to what Israel had already accepted a month ago before those talks fell apart.

One last key point here from Hostages Square, a lot of people here believe it is President Donald Trump, and perhaps only Trump, who can put pressure on Prime Minister Benjamin Netanyahu to get to a deal and to bring home the hostages. And that is where they see a lot of the hope and a lot of the focus of their efforts.

Oren Liebermann, CNN, in Tel Aviv.

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VAUSE: To Tel Aviv now, and Alon Pinkas, a former Israeli consul general in New York, is joining us.

It is good to see you, Mr. Ambassador. Thanks for getting up early.

ALON PINKAS, FORMER ISRAEL CONSUL GENERAL IN NEW YORK: Thank you. Absolutely, John, good to be with you.

VAUSE: It says a lot that the current ceasefire proposal was not discussed Tuesday by the Security Cabinet, while the Israeli ambassador to Washington was on CNN laying out in stark terms Israel's conditions for ending the war. Here he is.

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LEITER: This war ends when Hamas ends. We need to see this war end where Hamas is disarmed, where Gaza is demilitarized, and all of our hostages are out. If we are not careful, what's going to happen is we're going to get a few hostages out now, and we're never going to see the rest of the hostages again.

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VAUSE: If they're not careful, and he's taken at his word, it could be years before Israel agrees to a ceasefire, if ever. PINKAS: Absolutely. Look, what he was doing was parroting the

cabinet's decision or the five principles, de-militarize, de- radicalize, get rid of Hamas, Israel remains in Gaza, and a civilian government that no one knows who and what and where they're going to be coming from will take over Gaza. Those were the five principles set, and those were parroted by the ambassador.

Not that it makes a lot of difference to our viewers, John, but this is a complete 180 degree reversal from Mr. Netanyahu's previous policies. Until a few weeks ago, he was talking about a partial deal because he thought that a comprehensive war ending deal would necessitate an Israeli withdrawal and some kind of negotiations, and deny him the so-called total victory.

Now all of a sudden, he completely changed positions and is talking only about a comprehensive war ending deal, but setting the conditions, as you accurately pointed out, that cannot be met. Now, look, it's been 23 months, almost two years since the war began. And Hamas has not -- has been decisively degraded militarily, yes, and Gaza reduced to rubble, yes. But Hamas has not been resoundingly defeated and has not surrendered.

So I fail to see, as does the chief of staff of the Israel Defense Forces, for that matter, I failed to see what another military operation would achieve. So in that respect, what the ambassador said echoing the prime minister is just -- are just hollow cliches and slogans.

VAUSE: And when the U.S. presidential envoy, Steve Witkoff, was asked if the U.S. is on the same page as Netanyahu and his goal of destroying Hamas, it seems maybe not. Here he is.

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STEVE WITKOFF, U.S. SPECIAL ENVOY: Hamas understands that they can have nothing to do with the government going forward. Those are terms of the Israelis and the terms of President Trump as well.

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VAUSE: There is a pretty big difference from total destruction and not being allowed to take part in government. Is that a distinction that matters here? Is there some concern there that maybe the U.S. and Israel are not in lockstep?

PINKAS: Well, I don't think they are in lockstep. I think that people are misinterpreting what the U.S. is doing here. Not that I see a coherent and clear American policy, I don't and I don't think one exists, John. However, Trump being indifferent, aloof and supposedly providing a tacit green light could at the same time be a, you know, a sense of frustration, an expression of frustration, rather, that he's fed up, that he's basically saying, do whatever the hell you want to do. I have nothing to do with this.

I've begged you. I've pledged. I have, implored you not to do this. You decided otherwise. Be my guests. And so this goes either way because what is happening now, John, is, aside from the demonstrations that Oren Liebermann reported for you just a moment ago, Israel is completely isolated and under international siege in terms of ending the war with the conspicuous absence of the U.S.

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So basically, Israel is ignoring Britain, ignoring Canada, ignoring France, ignoring China, ignoring the European Union, ignoring everyone, and hinges or is dependent only not on the U.S., but on the whims of one person, Donald Trump. And that, as we know, that is a fickle thing to be dependent on. And that could change pretty quickly.

VAUSE: There's also been a lot of pressure on Israel for a transparent investigation into that deadly double Israeli strike on a hospital in southern Gaza. Preliminary findings have been released by the IDF. Part of it reads, "Troops operating in the area of Khan Younis to dismantle terrorist infrastructure identified a camera that was positioned by Hamas in the area of the Nasser Hospital that was being used to observe the activity of IDF troops in order to direct terrorist activities against them."

There was no specific evidence to support the claim about the camera, and the report goes on to say, "Further examination is needed on the authorization process prior to the strike, including the ammunition approved for the strike, as well as the decision-making process in the field."

Yes, this whole statement is essentially, you know, says nothing. Is this an effort at transparency but it really doesn't go there? It's kind of kabuki theater, if you like?

PINKAS: Well, it is kabuki theater. And however, there's a difference between this reaction and the -- and the last time this happened, about a month ago, at that time, Israel had supposedly irrefutable proof that one of the journalists was aiding and abetting and colluding with Hamas. This time, the prime minister came out with a sort of an apology, and the IDF instructed this investigation, the initial findings of which you just quoted.

But here's a novel idea for you, John. Just don't shoot at a hospital, even if there's a camera, even if all the information is correct. If it's all accurate, you have incontrovertible evidence of intelligence, evidence of something bad going on, do not shoot at the hospital. It's that simple. It doesn't matter what's in there. Certainly not a nuclear missile. So if this does not pose some kind of a grave threat to Israel, just avoid shooting at hospitals because the so-called collateral damage, which is human life, is not worth that camera, however menacing someone thought it was.

And apparently someone was too trigger happy. But this is what happens when you have an insoluble situation like this in Gaza with thousands of Israeli soldiers encircling Gaza that has hundreds, if not several thousands of Hamas fighters still active. This was bound to happen.

VAUSE: And the longer this --

PINKAS: And it will happen again.

VAUSE: Yes. The longer this war goes on, the more likely there'll be tragic mishaps as the prime minister described the event.

Ambassador Pinkas, thanks so much for being with us.

PINKAS: Thank you, John. Always.

VAUSE: In a moment, Donald Trump's special envoy expresses hope for an end to Russia's war in Ukraine, with a very different timeline from his boss. That's even as Russian troops inch forward Ukraine's southeastern region. Details after the break.

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VAUSE: While the U.S. president has repeatedly demanding Russia agree to a ceasefire with Ukraine within two weeks, a more realistic timeline is coming from his special envoy, Steve Witkoff, who is hoping for a deal by the end of the year. Witkoff has also confirmed that in return for an end to the fighting, Russia is demanding all of the annexed region, which, even though 30 percent of the eastern province remains under Ukrainian control.

Witkoff added what everyone already knows that Ukrainians are unlikely to agree to that demand. And it seems once again, President Trump is confused over the roles of Russia and Ukraine in this conflict, implying the Ukrainians actually had a choice to go to war.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm sure that Ukraine thought they were going to win. It's going to be, you know, we're going to win. You're going to beat somebody that's 15 times your size, but you don't go into a war that's 15 times your size.

(END VIDEO CLIP)

VAUSE: The U.S. president has also walked back that two-week demand for Russia to make a deal to end the fighting. Now there's no deadline even though Trump continues to warn Russia it's facing punitive sanctions.

CNN's Fred Pleitgen reports now from Moscow on the Kremlin reaction to the latest threats coming from the White House.

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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: The Kremlin certainly is taking all this very seriously. They say they're taking it very seriously. And they understand, of course, that that threat, not just of sanctions, but of course, also of secondary tariffs against countries that buy Russian oil, is still very much out there by the U.S. president. At the same time, it really appears as though the Kremlin believes that time is on their side. Some of the things that we've heard here in Moscow over the past

couple of days, especially from Russia's foreign minister, Sergey Lavrov, saying that Vladimir Putin, on the whole is ready and is willing to have a summit, a direct meeting with Volodymyr Zelenskyy of Ukraine. But that something like that needs to be accurately prepared, as he put it, and needs to be prepared in a way that actual progress can be achieved.

And the Russians, at least for their part, are saying they believe that things are still very far away from that being the case. They certainly aren't talking about this two-week deadline, or whether or not there's going to be a summit in those two weeks. They are saying that it is still very much a long road ahead before a summit like that could take place.

And there's really two things that the Russians are focusing on. One of them is those security guarantees for Ukraine that, of course, the Ukrainians and their European allies keep talking about. And, of course, the White House as well. Possible Western troops on the ground in Ukraine, possibly the U.S. also chipping in, for instance, with air power.

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The Russians are saying that they don't want Western troops on the ground. They are saying that that would be detrimental to Russian security. They, in fact, want to have a say in Ukraine's future security as well. That's something that, of course, could be very difficult to breach. And then as far as territories are concerned, the Russians still saying that they believe the Ukrainians are going to have to give up territory. And that's something that, of course, needs to be discussed.

So right now the Russians are saying that from their vantage point, Vladimir Putin is ready to meet with Volodymyr Zelenskyy, but it certainly doesn't appear from the Russians that all of that is in the cards any time soon.

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VAUSE: Fred Pleitgen there reporting in from Moscow.

Well, Ukraine is partially ending a travel ban which has prevented men aged 18 to 60 from leaving the country. The ban has been in place since the war began, but Kyiv says in the near future, Ukrainian men aged 18 to 22 will be free to leave in order to access quality education, as well as international experience.

In a moment, President Trump says he's fired Federal Reserve Governor Lisa Cook, but her attorney says not so fast. He can't do that. The latest on the legal battle between the president and the Federal Reserve. That's next.

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VAUSE: For Donald Trump, reality TV star, saying, "You're fired" was easy. But for Donald Trump, the U.S. president, it's a little more complicated.

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Well, he says he has caused -- he has enough cause, rather, to fire Lisa Cook from her position as governor of the Federal Reserve.

Her attorney says no. And now, like so many other disputes involving this White House, this one appears to be heading to court.

CNN's Tom Foreman has our report.

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DONALD TRUMP, U.S. PRESIDENT: We need people that are 100 percent above board. And it doesn't seem like she was.

TOM FOREMAN, CNN CORRESPONDENT (voice-over): President Trump says the deed is done; he has fired Federal Reserve board member Lisa Cook. But Cook and her lawyer say he can't do that, because the president has not built the case to give her the boot.

TOM DUPREE, FORMER U.S. DEPUTY ASSISTANT ATTORNEY GENERAL: Under the law, the president clearly does have the legal authority to fire a member of the Federal Reserve for cause.

I think what's a closer question, though, is whether what the president has at this point amounts to cause.

FOREMAN (voice-over): At issue: in 2021, Cook purchased a home in Michigan, then another home in Georgia, declaring both to be her primary residence, based on a CNN review of mortgage documents, potentially double-dipping on financial incentives for homebuyers.

But analysts note she has denied wrongdoing. She was never charged. That might not be a valid cause to fire her anyway, and she may have an explanation.

DUPREE: She could just say she made a mistake.

FOREMAN (voice-over): However, Trump has been fuming at the Fed for months for refusing to drop interest rates to head off rising inflation, which many economists expect to get worse as Trump's tariffs settle in.

TRUMP: The job he's done is just terrible.

FOREMAN (voice-over): So, he's tried and failed to shove aside Fed Chairman Jerome Powell. He's trying to push Cook out so he can name her replacement. And most of all, he's trying to make the seven-member independent board bend to his will, which some economists say is an awful idea.

JUSTIN WOLFERS, PROFESSOR OF ECONOMICS AND PUBLIC POLICY, UNIVERSITY OF MICHIGAN: We want the Fed to make decisions in the best interests of the American people, rather than the political interests of the president. If he proceeds down this path, then we get a step closer to a banana

republic.

FOREMAN (voice-over): Still, Team Trump has flung mortgage fraud accusations at New York Democratic Attorney General Letitia James, who got a civil judgment against Trump for falsifying business records, and Democratic Senator Adam Schiff from California.

TRUMP: I think Adam Schiff is one of the lowest of the low. I would love to see him brought to justice.

FOREMAN (voice-over): They both deny any violations, but Trump didn't even accuse Tulsi Gabbard of wrongdoing when she simultaneously claimed homes in Texas and Hawaii. Trump made her his director of national intelligence.

FOREMAN: It really comes down to that question of cause. Even if Cook did what she's accused of, is that big enough to trigger such a massive move involving the Fed?

Or is this just be-cause. Because. She was selected by President Joe Biden, and President Donald Trump doesn't want her there?

Tom Foreman, CNN, Washington.

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VAUSE: For years, her breakups made headlines and hit songs. But now, Taylor Swift has said yes after longtime boyfriend Travis Kelce popped the question. In a moment, the latest on the proposal, the ring, and the clickbait.

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VAUSE: Taylor Swift, intergalactic pop queen sensation, has said yes to boyfriend Travis Kelce of the Kansas City Chiefs. And now brace for months and months of breathless coverage of all things Tayvis -- Taylor, Travis. Yes.

It seems there was zero effort to keep the news private, with the happy couple posting these images on social media. The announcement comes on the eve of the release of Swift's new album, "The Life of a Showgirl."

And for all the Swifties out there, there's just excitement over what this new love story will bring.

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BRYAN WEST, TAYLOR SWIFT REPORTER, "USA TODAY/GANNETT": Fans have been with her for 20 years. This is somebody who wrote in her diaries at an early age she's always wanted to be a proposed.

She even said on the "New Heights" podcast that she had written songs about wanting somebody to be like in a John Hughes movie outside of her window, holding a boombox.

And Travis Kelce basically turned that podcast into his private dating app. So, she said unless he's crazy, he's exactly what I've been wishing for.

We learned that he actually asked her that Sunday after the taping at his place. So, Ed Kelce is telling ABC in Cleveland that Travis had set up this beautiful garden arrangement. He said, Hey, before we go to dinner, we should have a little glass of wine. [00:40:08]

And that's when he got down, and he popped the question.

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VAUSE: Workers in Spain are now preparing for what will be a messy festival.

Trucks loaded with tons of tomatoes are heading for the Tomatina, the Spanish food festival which attracts thousands of tourists to the city of Bunol.

It all happens on the last Wednesday of August in Valencia. Last year, more than 22,000 people showed up to throw tomatoes at each other.

Sounds like fun.

Thank you for watching CNN NEWSROOM. I'm John Vause, back with more news at the top of the hour. In the meantime, stay with us. WORLD SPORT starts after a short break.

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